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The United Kingdom has committed £1.98 billion ($2.5 billion) over three years to the World Bank’s International Development Association (IDA) fund, aimed at supporting the world’s lowest-income nations.
The pledge was announced on Thursday, ahead of a replenishment conference scheduled for December 5-6 in Seoul.
The funding will back initiatives designed to foster economic growth, combat poverty, and mitigate the effects of climate change, according to a government statement.
The IDA fund provides grants and low-interest loans to impoverished countries, with its resources replenished every three years. This year’s replenishment targets surpassing the $93 billion raised in 2021, as poor nations grapple with debt crises, climate-related disasters, and ongoing conflicts.
World Bank President Ajay Banga is pushing for a record fundraising outcome to address these mounting challenges. The UK’s pledge follows the United States’ $4 billion commitment announced last week by President Joe Biden.
While the UK once allocated 0.7% of its gross national income to overseas aid, this was reduced to 0.5% in 2021 under the previous Conservative government, citing economic pressures from the COVID-19 pandemic. Prime Minister Keir Starmer’s Labour government, which came to power in July, has pledged to restore the aid budget to its original level, although no specific timeline has been set.
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