US pledges USD 4 Billion to replenish World Bank's International Development Association
US Pledges $4 Billion to Support Vulnerable Countries
Announcement by President Joe Biden
US President Joe Biden has announced a significant pledge of $4 billion over the next three years to support the World Bank's International Development Association (IDA). This announcement was made in collaboration with World Bank President Banga. President Biden encouraged other nations to join in increasing their contributions.
About the International Development Association (IDA)
The IDA is a part of the World Bank that assists low-income countries. Established in 1960, it complements the International Bank for Reconstruction and Development (IBRD). IDA provides grants and low-interest loans to help countries invest in their futures, aiming to create more prosperous societies. It is a major source of aid for 78 low-income countries, offering concessional terms with low or zero interest and long repayment periods.
Funding and Replenishment
IDA is primarily funded by contributions from member countries' governments. Donors meet every three years to replenish resources and review policies. The latest replenishment, IDA20, concluded in December 2021, securing a historic $93 billion for fiscal years 2022-2025.
Doubts Revealed
Joe Biden
Joe Biden is the President of the United States, which is a country in North America. He is like the leader of the country, similar to how India has a Prime Minister.
World Bank
The World Bank is an international organization that helps countries by providing them with money and advice to improve their economies and reduce poverty. It is like a big bank for countries.
IDA
IDA stands for International Development Association. It is a part of the World Bank that helps the world's poorest countries by giving them money at very low interest rates or even as gifts.
Pledge
A pledge is a promise to give or do something. In this case, it means that Joe Biden has promised to give $4 billion to the IDA.
Low-income countries
Low-income countries are nations where people generally earn less money and may not have access to many resources like good schools or hospitals. The IDA helps these countries to improve their living conditions.
Replenishment
Replenishment means adding more money to a fund or account. Here, it refers to countries giving more money to the IDA so it can continue helping low-income countries.
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