Denmark boosts World Bank fund for poorest nations by 40%
Denmark's $491.7M pledge supports World Bank's record funding goal
Denmark has pledged around $491.7 million to the World Bank Group’s fund for the poorest nations, marking a 40% increase from its previous contribution. The announcement came on Monday during the United Nations General Assembly in New York.
The World Bank Group is seeking to secure a record replenishment of the International Development Association’s funding by December, aiming to surpass the $93 billion achieved in December 2021. This effort to raise over $100 billion comes amid tight fiscal conditions, as wealthier nations scale back spending due to slower recoveries from the COVID-19 pandemic.
Denmark’s pledge of 3.3 billion kroner signifies a substantial commitment to development, addressing the rising financing needs of debt-laden low-income countries. The World Bank highlighted this contribution as a significant response to African leaders’ calls for increased IDA funding.
"I am proud to announce our intention to provide a 40% increase. I think this is necessary, and I ask all donors to follow the example. This is the right time to step up and to scale up, all of us"- @Statsmin on Denmark's 40% increase in pledge to #IDA21 https://t.co/OMn3tFdUG5 pic.twitter.com/HyWOJsCy9E
— World Bank (@WorldBank) September 24, 2024
Danish Prime Minister Mette Frederiksen emphasized Denmark’s dedication to achieving the Sustainable Development Goals and the Paris Climate Agreement. In a statement, she expressed pride in answering the call from African partners for more funding and urged other nations to join this effort.
World Bank President Ajay Banga praised the donation, noting its significant impact. He explained that every dollar raised by IDA can be leveraged four times through the bank’s borrowing capacity, calling it “the best deal in development.”
Frequently Asked Questions
Here are some common questions asked about this news
How much has Denmark pledged to the World Bank’s fund for the poorest countries?
Denmark has pledged about $491.7 million.
Why is Denmark’s pledge significant?
It’s a 40% increase over Denmark’s previous contribution and supports the goal of raising over $100 billion.
What is the World Bank aiming to achieve with the replenishment?
The World Bank aims to close a record replenishment of the International Development Association’s funding.
What did Danish Prime Minister Mette Frederiksen say about the pledge?
She said it signifies Denmark’s resolve in achieving the Sustainable Development Goals and the Paris Climate Agreement.
How does the World Bank President view the impact of the donation?
Ajay Banga said every dollar raised by IDA can be multiplied by four times, making it highly impactful.
