The world's lowest-income countries will receive access to
billions of dollars in transformative grants and low-interest
loans as a result of a new UK investment announced today.
Development Minister today announced that the UK
will provide £1.98 billion over three years to the International
Development Association (IDA), the World Bank's fund for the
world's lowest income countries, to go towards projects promoting
economic growth, tackling poverty and addressing the impacts of
climate change.
Through a unique funding mechanism, the UK contribution will help
to unlock billions of dollars through other sources of finance,
including from private markets: for every $1 a country pledges,
up to $4 can be spent. This will be funded from the UK's
Official Development Assistance (ODA) budget.
IDA is the largest source of grants and low interest loans for
low-income and vulnerable countries and the UK's contribution
will help the World Bank support more than 1.9 billion people
across the globe.
The World Bank's model has seen it provide $93 billion in finance
to 75 countries, 39 in Africa, over the last 3 years. In that
time, IDA has supported more than 86.5 million children with a
better education and 75 million people with new or improved
access to electricity, lifting individuals out of poverty and
boosting economic growth in recipient countries.
Foreign Secretary said:
Growth and stability in lower income countries is firmly in the
UK's interest. If we are to grow our economy, tackle the climate
crisis and reduce irregular migration, we need to work in
partnership with these countries.
IDA's track record shows that it is one of the best ways to do
this. I urge other donors to step up at next week's
conference.
Minister for Development said:
Britain is back with a voice on the world stage. When we said we
would take a new approach to development, built on genuine
partnerships and based on respect, we meant it.
Leaders of low-income countries around the world called for
stronger IDA contributions and we listened.
We listened because we understand that more growth in IDA
countries means stronger global growth, which benefits all of us.
This funding will unlock billions to support vital economic
growth, changing and saving lives.
Today's announcement is the latest example of the UK's updated
and modern approach to development, based on respect, partnership
and common interests.
The UK is a strong support of IDA due to its strong track record
of working in partnership with recipient countries and delivering
sustainable growth. Since 1960, 36 countries have ‘graduated'
from IDA.
For example, South Korea, formerly a low-income country supported
by IDA loans, is today one of the world's wealthiest countries,
and will be hosting the IDA donor conference next week.
set out the government's
“new approach to development” at a major speech to Chatham House
in October. She outlined four key “shifts” needed to modernise
the UK's approach to development and restore its world-leading
status: partnership, multilateral reform, harnessing UK expertise
and growing opportunity for all.
