The Republic of Korea has announced a 45% increase in its contribution to the World Bank’s International Development Association (IDA). Korea contributed KRW 585 billion in IDA20 and has committed to raising its contribution to KRW 846 billion in IDA21.
“Drawing from Korea’s experience of transforming from poverty and hunger into a major economy, Korea will actively contribute to global efforts to overcome the challenges,” said Yoon Suk Yeol, President of the Republic of Korea. “Korea supports the vital role of IDA in assisting low-income countries to achieve sustainable development and build resilience against global challenges.
The International Development Association (IDA) is the World Bank’s fund for 78 low-income countries, serving as their largest source of multilateral development finance. It offers concessional financing for projects that promote economic growth, enhance resilience, and improve living conditions in these countries. Korea graduated from IDA in 1973 and has been an IDA donor since 1977. The country’s increased commitment to IDA21 comes at a time when global crises are having a disproportionate impact on low-income nations.
In addition to its pledge at the G20 summit, Korea is set to host the final IDA21 replenishment meeting in Seoul on December 5-6, 2024. This session will serve as a platform for donor countries to finalize their contributions and discuss the strategic directions for IDA’s future financing framework. The meeting is expected to attract high-level representatives from various nations and international organizations, further solidifying Korea’s position as a key player in global development finance.
“Korea’s journey from an IDA recipient to a leading donor is a compelling testament to progress, resilience, and global leadership,” said Ajay Banga, President of the World Bank Group. “With this commitment, Korea not only sets the stage for a successful IDA summit but also sends a powerful message about the unparalleled impact of IDA in driving development. Their generosity will help countries to advance on their development paths across digital, health, skilling and infrastructure, laying the foundation for private sector growth, job creation, and lasting prosperity.”
IDA supports a wide array of development activities, including digital development, climate adaptation, primary education, basic health services, gender equality, clean water and sanitation, agriculture, infrastructure, and sustainable debt management. These efforts pave the way for equality and economic growth.
