The World Bank Group announced on Monday that Denmark has pledged approximately $491.7 million to the latest replenishment of its International Development Association (IDA) fund for the poorest countries, marking a 40% increase from its previous contribution.
Significance of the Pledge
This contribution is part of a broader effort by the World Bank to raise over $100 billion by December, surpassing the previous record of $93 billion achieved in December 2021. The fundraising campaign is particularly challenging as many wealthier nations are scaling back their spending amid slow recoveries from COVID-19.
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Denmark’s commitment of 3.3 billion kroner was announced during the United Nations General Assembly in New York, highlighting its dedication to development at a time when financing needs are growing in low-income countries grappling with debt.
The World Bank referred to this pledge as a “deliverable” to African leaders who have advocated for increased IDA funding.
Key Quotes
Danish Prime Minister Mette Frederiksen emphasized the importance of the pledge, stating, “We all want a more prosperous and equitable world. This financial commitment signifies Denmark’s resolve and dedication in achieving the Sustainable Development Goals and the Paris Climate Agreement. I am proud to answer the call from our African partners for more funding. We urge other countries to join forces with us.”
World Bank President Ajay Banga highlighted the impact of such contributions, noting that the donation will have a “tangible impact on people’s lives.” He added, “Every dollar raised by IDA can be multiplied by four times through the bank’s own borrowing capacity. It’s the best deal in development.”
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