Why we need to keep funding the International Development Association (IDA)

I spend a lot of time focused on how we can use global financing to drive prosperity. My message to international donors is simple: grants and concessional financing should go where other funding can’t reach. And some of the most powerful results come when donors work together, pooling resources for greater impact and efficiency. That’s why I strongly support global health institutions like Gavi and the Global Fund. It’s also why I spent the last week at The World Bank 's Annual Meetings advocating for the critical role of the International Development Association (IDA). 

IDA is an incredible tool for helping countries invest in their people and grow their economies. Every dollar in donor grants is leveraged nearly four times by the World Bank, providing the lowest-cost financing to low-income countries for vital investments in their prosperity. And IDA delivers results: between 2012-2023, 1.18 billion people received essential health services, and 117 million people gained access to improved water services. 

This year, the Bank is urging donors to increase contributions by at least 20%, a call I fully support. Encouragingly, others do too, and it was great to join Joanne Carter of RESULTS and RESULTS Educational Fund , African Center for Economic Transformation (ACET) , Eugene Cho of Bread for the World , Tom Hart of InterAction , and Janti Soeripto of Save the Children International to discuss how global advocates can support the big push on this replenishment. Thanks to Jay Heimbach and Akihiko Nishio for hosting. It’s been very encouraging to see Denmark and Spain both announce significant increases in their IDA contributions that stretch beyond the 20% target, and I am hopeful that donors recognize what an incredible investment IDA is for global prosperity. 

IDA's agility and efficiency make it particularly effective, and I heard from Lesotho Finance Minister Retselisitsoe Adelai Matlanyane firsthand how IDA helps her country adapt to climate change, rising global food prices, and natural disasters at an excellent event hosted by Center for Global Development . In my panel discussion with Ishac Diwan , Margaret Kuhlow , Dirk Reinermann I argued that IDA is highly trusted and plays a vital role in the global safety net, but that we are also asking the association to take on a lot. IDA needs to be fully replenished this year if it is to continue playing these roles. It is even more critical at this moment because of the increasing debt burdens many low-income countries face. I am grateful for Ishac’s thinking on how the global community can provide much needed liquidity in these times of crisis. I am hopeful–and will keep pushing as hard as I can–that creditors will come together with borrower countries and international financial institutions to address the high costs many countries face in servicing their debt and restore net inflows of financing so that countries can invest in their futures. Thanks Clemence Landers , for hosting this great discussion.  

What are some of the best ways to invest low-cost financing through a fully funded IDA? Gender was a major theme this week and the World Bank designated an entire day to discuss how the World Bank can accelerate gender equality. I was thrilled to record a podcast with Mavis Owusu-Gyamfi , CEO, ACET and Reena Ninan , Journalist, Host of HERO Podcast to discuss how investing in women’s health and economic opportunities creates ripple effects that benefit all, not just women themselves.  

I was delighted that Ajay Banga announced the World Bank’s gender commitments, including expanding 300 million women’s access to technologies, such as broadband, that help them participate in the modern economy,  and enable an additional 80 million women entrepreneurs to access the capital they need to build or expand businesses. The Bill & Melinda Gates Foundation is excited to continue to partner with the World Bank to advance economic opportunities for women, including by increasing access to capital and I encourage you to read the white paper we published earlier this year, which lays out a clear pathway for how regulators, wholesale financiers, and financial institutions can get capital in the hands of capable women who want to grow their business and create jobs. This data I saw on display at the World Bank atrium helps explain why a focus on women is so important to tackle our development challenges. 

I was able to talk more about digital public infrastructure, especially instant and inclusive payment systems (IIPS) with the Arab Monetary Fund , H.E. Fahad M. Alturki, PhD , Director General Chairman of the Board; Dr. Maher Hasan , Counsellor - Chief Economist ; Dr. Mokhtar Benlamine , Director of Surveillance and Financing Department ; and Mr. Yisr Barnieh , Chief of Monetary and Financial Sector Division. They’ve done great work on facilitating cross-border payments to support remittances in Pakistan across their member countries, and I’m excited about the partnership our Innovative Financial Services team is developing with them to extend this service to their member states in Sub-Saharan Africa.  

And finally, I was delighted to share that the Gates Foundation will join the Government of Norway and the World Bank in a new partnership that will support governments to design, pilot and incentivize social protection platforms to scale effective nutrition and food systems interventions. It’s hard to overstate what an important investment nutrition is for both individual health and opportunity as well as national economic growth. Sharing best practices and evidence on what works is key to tackling this multisectoral challenge, which is why we're thrilled to be bringing this commitment to the Brazilian-led G20 Global Alliance on Hunger and Poverty next month.  

And to come full circle: the low-cost financing IDA provides is critical to financing ambitious and large-scale social protection programs so this partnership with Norway and the World Bank stands on the shoulders of IDA. Thank you Anne Beathe Tvinnereim, Minister of International Development, Norway, and Mamta Murthi , VP of Human Development, World Bank for hosting this discussion.