Thursday 28 Mar 2024
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KUALA LUMPUR (July 20): The World Bank Group commitments to developing countries hit nearly US$64 billion in fiscal year 2018, which ended June 30, with record increases in human development, climate finance, and International Development Association (IDA) support.

In a statement on its website, World Bank president Kim Jim Yong said demand continues to rise for the bank’s finance, expertise, and innovation.

“In the last fiscal year, our shareholders improved our ability to meet that demand with a historic $13 billion capital increase, which will help us address the most critical challenges of our time, and help our client countries – and their people – reach their highest aspirations.

“The capital increase was a strong vote of confidence in the World Bank Group’s staff, who work tirelessly across the globe to end extreme poverty and boost shared prosperity.”

The World Bank said human Development lending—which spans education; health, nutrition and population; social protection; and jobs—increased by a record 74%. 

“Its share in the World Bank’s total commitments for the year saw an unprecedented increase, going to 25.2% in FY18 from 16% in FY17,” it said.  

The bank said this significant shift demonstrates increased demand by countries to invest in building human capital, reflecting the priorities of the Human Capital Project, an ambitious effort to accelerate more and better investments in people that was announced at the World Bank Group’s 2017 Annual Meetings.

Meanwhile, commitments from the International Development Association (IDA), which provides zero or low-interest loans and grants to the world’s 75 poorest countries, hit a record US$24 billion during the first year of IDA18.

The World Bank said IDA’s increased commitments reflect strong demand for financing, marked by a 27% increase compared to the first year of IDA17.

It said FY18 represents a historic step for IDA in terms of policy and financing innovations including new ways to address rising risks of fragility, mobilise private sector investments, and increase capacity for climate financing.

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