More funding from the international community to the poorest countries – Finland contributes with EUR 256 million
Press release 367/2010
15 December 2010
The World Bank's International Development Association IDA agreed on the sixteenth replenishment (IDA16) in Brussels on 14-15 December. Even though the meeting took place at a challenging time and the impacts of the global economic crisis are evident, the international community underlined the fact that the poorest countries are the ones that suffer the most from the economic crisis and other crises including the climate change. The negotiating parties of the funding package declared that the outcome is an evidence of a global will to support development especially in the poorest countries.
The agreed replenishment amounts to roughly 38 billion Euros; about 20 percent more than the previous replenishment agreed in December 2007. The funds will be allocated to 79 countries of the lowest income group, mainly in Sub-Saharan Africa.
The number of donor countries rose to 51 countries. Quite importantly, in addition to the efforts of traditional western donors, many emerging economies came along as new donors or raised their previous donation level (including India, China, Mexico, Kazakhstan, Peru, Argentina, Iran, Chile and Philippines).
Finland's contribution to the replenishment round is 256 million Euros, which will be encashed by the World Bank during the forthcoming nine years.
Representatives of borrower countries and NGO's were heard in the meeting, and the participants agreed on the funding allocation principles. The primary guiding principles include development performance and effectiveness of the support. Lending is targeted especially to countries who demonstrate willingness to develop and are committed to good governance and making changes in support of development. Specific strategic themes include fragile and conflict states, gender equality, climate change and post-conflict funding.
The themes are in line with the Finnish Government's development policy programme of 2007 for environmentally, economically and socially sustainable development to reduce poverty.
It is noteworthy that the IDA's role with regard to climate change is becoming stronger. In the meeting, Finland pointed out the importance of including climate-proofing in eradication of poverty. This entails developing of energy production and cleaner sources of energy, promoting of agriculture, and integration in all development measures. As urged by Finland, improved follow-up and reporting of climate efforts will be expected from IDA. Finland has also paid particular attention to coordinating the themes of climate and gender equality.
Further information: Pasi Hellman, Deputy Director General, tel. +358 40 761 1551, or Counsellor Olli Kantanen, tel. +358 9 1605 6351, Department for Development Policy, and the World Bank website at www.worldbank.org(Link to another website.) (Opens New Window)