In a landmark move, President Joe Biden has pledged a record-breaking $4 billion contribution from the United States to the World Bank’s International Development Association (IDA) fund, aimed at aiding the world’s most impoverished nations. The announcement was made during a closed session at the Group of 20 (G20) summit held in Rio de Janeiro, according to sources familiar with the decision.
This unprecedented pledge significantly surpasses the $3.5 billion commitment made by the U.S. during the previous IDA replenishment in December 2021. Biden’s decision underscores a strengthened commitment to addressing global poverty and fostering development in low-income countries.
The IDA, a key arm of the World Bank, focuses on providing concessional loans and grants to countries with the most severe economic challenges. The U.S. contribution is expected to bolster ongoing efforts to improve infrastructure, education, healthcare, and climate resilience in these vulnerable regions.
This historic contribution highlights the Biden administration’s focus on international collaboration and its prioritization of uplifting the world’s poorest communities. By increasing its financial commitment, the U.S. reaffirms its leadership role in global development initiatives.