In a powerful demonstration of global solidarity, leaders from around the world gathered in Seoul, South Korea, on Dec. 5-6, 2024, for the International Development Association (IDA) ’s 21st replenishment cycle (IDA21). IDA drives transformative change in the world’s most under-resourced countries through low-interest loans and grants, about 20% of which are grants that do not need to be repaid. This ensures essential support without burdening nations with unmanageable debt. Read more in our explainer here.
The meeting secured close to $24 billion in donor contributions for the 21st replenishment of the IDA, which, thanks to IDA's unique leveraging model, will generate $100 billion in affordable financing. This funding will be crucial in fighting extreme poverty, tackling climate change, and addressing the challenges faced by the world’s most under-resourced communities. IDA21 underscores the power of partnership, innovation, and the generosity of donors, even in the face of challenging fiscal situations, in unlocking the potential of nations and transforming lives.
As Global Citizens, we have been steadfast advocates for this replenishment, which will support 78 countries in need by investing in health, education, infrastructure, and climate resilience, while also stabilizing economies, creating jobs, and building the foundation for a brighter future. Ahead of IDA21, we called on G7 leaders to step up and contribute to an ambitious target of at least $120 billion in funding. Although this target wasn't reached, it still surpasses $93 billion that was raised in the last replenishment cycle.
The UK Leads with a Bold Commitment
The United Kingdom made headlines with its pledge of £1.98 billion for IDA21, a 40% increase from its IDA20 contribution. This substantial commitment shows renewed leadership from the UK, and marks an important step towards rebuilding the UK’s position on the global stage
“Britain is back with a voice on the world stage,” Anneliese Dodds, UK Minister for Development, told The World Bank. “When leaders of under-resourced nations called for stronger IDA contributions, we listened. This funding will unlock billions to support vital economic growth, changing and saving lives.”
This bold step drew praise from Ajay Banga, President of the World Bank Group, who noted:
“Investing in IDA’s proven development solutions is one of the best defenses against conflict, fragility, and climate shocks. A stronger IDA secures a more prosperous, stable, and resilient future for vulnerable nations.”
More Ambitious Pledges at IDA21
In addition to the UK’s leadership, several countries announced significant increases in their contributions. Denmark, and Spain committed to roughly 40% increases from the last funding cycle, further solidifying their roles as leaders in global development, while Japan pledged an increase of over 20%.
The United States pledged an ambitious $4 billion, but it remains to be seen whether the incoming Congress will appropriate this funding.
Several other donor countries also stepped up and significantly increased their support: Croatia (+115%), Poland (+100%), Latvia (+60%), and Norway (+50%).
South Korea’s Journey: From Aid Recipient to Global Role Model
Hosting the IDA21 pledging meeting was symbolic for South Korea, a nation that transformed from an under-resourced country to a global economic powerhouse. Early IDA support helped South Korea rise, with its GDP per capita growing from $158 in 1960 to $32,254 in 2022.
Now an IDA donor, South Korea increased their contribution to IDA21 by 45% from the last funding cycle — and shared expertise through initiatives like the Korea World Bank Partnership Facility (KWPF) and the Korea Green Growth Trust Fund (KGGTF).
Why Should Global Citizens Care About IDA?
IDA is a cornerstone for defeating extreme poverty, protecting communities from climate crises, and fostering inclusive growth. IDA really works — over the past six decades, 35 countries have graduated from IDA, with some, like South Korea, becoming prosperous enough to become donor countries themselves.
IDA has been a vital partner for the nations who need it most, offering affordable financing through low-interest loans and grants and unparalleled development expertise. Over the last decade alone, IDA mobilized $270 billion, including $179 billion for Africa, and became the largest provider of concessional climate financing by investing $85 billion globally, with over half of those funds allocated to climate adaptation projects like flood protection, heat-resistant infrastructure, and climate-smart agriculture.
What’s next for IDA? Over the next three years, IDA programs will:
- Combat climate change and preserve biodiversity
- Accelerate digital transformation
- Build infrastructure critical to economic development
- Scale clean energy and climate-resilient agriculture
- Expand education and healthcare.
- Enhance gender equality and economic opportunities for women and youth
Solidarity in Action
Beyond the money, the negotiations leading to this replenishment have focused extensively on outlining how IDA funds will be allocated and used to maximize impact in under-resourced nations. IDA is not just a fund — it’s a lifeline for communities in dire situations and helps countries lift people from poverty.
The pledges for IDA21 in Seoul were good, but not enough. $100B is short of the $120B called for by African heads of state or by over 100 civil society and business leaders in the Abidjan Accord, which was announced during the Economic Development Assembly in Côte d’Ivoire in October.
Civil society is ready to work with the World Bank to ensure IDA commitments lead to tangible outcomes for communities, particularly across the African continent where in the coming decades 25% of the world’s working-age population will live.
Global Citizen also remains committed to collaborating with the World Bank to drive progress towards our shared goal of ending poverty on a livable planet.
In an open letter to donors, Banga said: “None of this — the financing or the efficiency — would have been possible without the unwavering support of our donor countries, advocacy from civil society, and creativity from clients. To each of you — thank you for your trust, your partnership, and your belief in the mission of IDA. Today marks a milestone, but it is also a beginning of sorts. Together, we have proven that collective action can achieve extraordinary results. But the work is far from over.”