Washington DC, US
Reuters
US President Joe Biden pledged a $US4 billion US contribution to the World Bank’s International Development Association fund for the world’s poorest countries, two sources with knowledge of the commitment said on Monday.
Biden announced the US pledge during a closed session of the Group of 20 summit in Rio de Janeiro, according to the sources, who spoke on condition of anonymity. The amount is a record and substantially exceeds the $US3.5 billion Washington committed in the previous IDA fund replenishment round in December, 2021.
US President Joe Biden delivers remarks during an event launching the Global Alliance Against Hunger and Poverty at the G20 Summit at the Museum of Modern Art in Rio de Janeiro, Brazil on Monday, 18th November, 2024. PICTURE: Eric Lee/Pool via Reuters
A White House spokesperson in Washington declined comment on the World Bank’s IDA replenishment.
It is unclear if US President-elect Donald Trump, who has proposed cutting foreign aid in the past, will honour Biden’s pledge as he and billionaire Tesla and SpaceX CEO Elon Musk seek to slash US spending through a new government efficiency panel. An appropriation by the US Congress to fund the commitment would not likely take place until after Trump takes office in January.
A spokesperson for Trump’s transition team could not immediately be reached for comment.
“Historic pledge”
Earlier in Rio de Janeiro, US deputy national security adviser Jonathan Finer told reporters that Biden would announce a “historic” pledge to the IDA replenishment.
Finer also told reporters at a briefing on the G20 summit that Biden will launch a bilateral clean energy partnership when he meets Brazilian President Luiz Inacio Lula da Silva on Tuesday.
The World Bank’s IDA fund, which provides mainly grants and very low interest loans to the poorest countries, is replenished every three years, and a pledging conference is scheduled for 6th December.
World Bank President Ajay Banga is aiming for a record amount exceeding the $US93 billion refunding in December 2021, amid rising demands from poor nations in Africa and elsewhere that are struggling with crushing debts, climate disasters, conflict and other pressures.
Banga told Reuters in October that a $US120 billion replenishment is possible, but that goal would require some substantial increases in country commitments.
Biden’s new US commitment is about 14.3 per cent higher than its 2021 contribution. At the IMF-World Bank annual meetings in October, Spain announced plans to boost its contribution by 37 per cent to €400 million.
Denmark in September announced a 40 per cent increase in its contribution to about $US492 million.
– Additional reporting by JARRETT RENSHAW in Rio de Janeiro
