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FAQs

FAQs

Frequently Asked Questions

What is IDA 2021?

In 2024, IDA will work with donors and borrowing countries to replenish resources that we will use to deliver on global development goals.

  • The developing world faces a daunting crisis. Nearly 700 million people live in extreme poverty and, over the next five years, people in one of every four developingcountries will be poorer than they were before COVID-19. Violence and severe weather events fueled by climate change continue to displace people, disrupt food supply, and exacerbate poverty, particularly in fragile and conflict-affected regions.
  • More than half of low-income countries are in, or at high risk of, debt distress. The crisis is particularly difficultfor countries with weak credit ratings, which face sharply elevated borrowing costs in the context of fiscal duress.
  • At the same time, there is a historic opportunity to accelerate change. Demographic shifts, particularly in Africa, the largest and youngest continent, present a major opportunity to speed up sustainable growth and development—supported by targeted investment, appliedknowledge, and good governance.
    IDA21—the 21st replenishment round since 1960 will work to end poverty on a livable planet. IDA21 will improve lives with a particular focus on women and youth, increasing prosperity, combating climate change and preserving biodiversity, building resilient societies, accelerating digitalization, creating jobs, and building the infrastructure needed to support and sustain economic growth.
  • Ongoing dialogue will build consensus for action.
    Specific priorities and the financing framework are currently being developed in consultation with IDA donors and recipients.
  • Unprecedented challenges call for unprecedented
    ambition. To meet the unprecedented challenges of our time, IDA21 donor commitments need to match the globalambition for change.

IDA21 will tackle the major challenges of our time.

  • Climate action is development in action. IDA countries are disproportionately vulnerable to climate change, with limited capacity to shield communities and economies from extremeweather events and long-term impacts. IDA is the largest source of concessional finance to low-income countries. IDA21 will support national efforts to meet the climate transition head on. This will include a strong push to expand energy access from renewable sources, as well as an emphasis on increasing adaptation and resilience.
  • Country-led approaches, global solutions. IDA21 will help poor countries lift people out of poverty; protect them from climate change and pandemics; boost growth to create jobs and prosperity; raise agricultural productivity; develop human capital with a focus on women and youth; and improve governance while seeking to address debt distress.
  • IDA’s financial strength and innovation help to maximize resources. IDA21 will build on the strength of our innovative financing approach, which multiplies the impact of donor contributions while protecting the World Bank’s triple-A credit rating to expand large-scale,highly concessional funding.
  • IDA helps countries in or at risk of debt distress. IDA’s highly concessional funding enables these countries to avoid costly financing and reduce fiscal burdens. And IDA helpsgovernments facing high debt and fiscal imbalances to manage risk while entrenching sustainable, transparent borrowing practices.

Strengthening partnerships and amplifying voices.

  • Stepped-up partnerships will support an ambitious IDA21 replenishment. Discussions will begin in March 2024 and continue through the year. IDA21 will strengthen partnerships with multilateral and bilateral agencies, national institutions, the private sector, and civil society. Stepped-up co-financing will improve the coordination of capital flows to poor countries while reducing transaction costs.
  • IDA21 will amplify the voices of developing countries—but only if they are heard now. The voices of IDA recipients will play a central role in ensuring necessary increases in donor contributions to enable an even larger stream of leveraged financing.