ODA Topics 1

Assistance for Low-Income Countries through the World Bank Group
—International Development Association (IDA) 20 Replenishment—

IDA20 Final Meeting (December 2021) (Photo: World Bank Group)

In December 2021, Japan hosted the final meeting of IDA20 Replenishment of the International Development Association (IDA), which is a part of the World Bank Group. The meeting resulted in an agreement on the largest financing package ever mobilized in IDA’s history.

IDA is an organization that is dedicated to supporting particularly low-income developing countries within the World Bank Group and it is the world’s largest source of donor funds providing very long-term and low-interest loans, grants and other assistance. Moreover, IDA significantly contributes to global poverty reduction by responding in an integrated manner to diverse development issues in low-income countries in each region, regardless of particular regions or sectors, as the most important development finance institution in supporting low-income countries, which determines the direction of development agendas to be addressed by the international community. For example, IDA provides assistance in sectors such as economic growth promotion towards poverty reduction, infrastructure to improve living standards, global health, education, climate change, and disaster risk management.

In order to meet growing demands for the IDA’s resources from low-income countries in their response to the COVID-19 crisis, the Government of Japan led discussions by calling to begin discussions on IDA replenishment ahead of other countries, and for the first time in its history, IDA has agreed to advance IDA20 replenishment by one year departing, from its ordinary three-year replenishment cycle.

At the final meeting hosted by Japan in December 2021, Prime Minister Kishida stated that, in parallel with Japan’s provision of vaccine-related support for developing countries, IDA has also actively supported low-income countries in their response to COVID-19, including vaccine support, and IDA’s role has proven to be even more important during the crisis. Finance Minister Suzuki spoke of the importance of delivering vaccines and medicines, including to developing countries, to stop new variants from emerging, as well as the importance of further strengthening prevention, preparedness, and response for future health crises, including through promoting universal health coverage (UHC). Minister Suzuki also announced Japan’s contribution of ¥376.7 billion (equivalent to approximately $3.4 billion) to IDA. Including Japan’s contributions such as this, a financing package of $93 billion, the largest ever mobilized in IDA’s history was agreed on, for IDA20 (covering the period from July 2022 to June 2025).

Under IDA20, 74 low-income countries across the world will be able to receive assistance from IDA. In this replenishment, it is planned to support countries with such development agendas as the following positioned as priority areas: responding to COVID-19 and strengthening health systems including through promotion of UHC, enhancing resilience to natural disasters, facilitating quality infrastructure investment, and ensuring debt transparency and sustainability.