Leaders from various Pacific Island nations have emphasized the necessity for a strong replenishment of the World Bank’s International Development Association (IDA21) during its upcoming 21st cycle. The IDA is essential as it offers grants and concessional financing to those in dire need and is known for its ability to effectively multiply donor contributions, providing four times the impact through its funding, according to the World Bank.
Every three years, this fund undergoes a replenishment process, with donor countries expected to convene in South Korea in December to finalize the commitments for this period. During World Bank Group President Ajay Banga’s recent visit to the region, leaders from 11 Pacific nations reaffirmed the pivotal role of the IDA in supporting their efforts toward enhancing development and climate resilience.
Tonga’s Prime Minister, Hu’akavemeiliku Siaosi Sovaleni, who chairs the 53rd Pacific Islands Forum Leaders’ Meeting, stated, “If IDA21 meets the mark, the potential for positive change in the Pacific is enormous. With the right support, Pacific nations can build a transformative and resilient future for generations to come.”
During discussions with Mr. Banga, representatives from Fiji, the Federated States of Micronesia, Kiribati, Nauru, Papua New Guinea, the Republic of the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu explored how IDA21 can align with the development priorities outlined in the Pacific Islands Forum’s 2050 Strategy for the Blue Pacific Continent.
In a joint statement, the leaders advocated for broader access to concessional finance and supported the World Bank Group’s goal of directing 45 percent of its funding towards climate-related initiatives. They also praised the World Bank’s ongoing efforts to create a more efficient institution that facilitates easier access to financing, guarantees, and knowledge.
Pacific Islands Forum Secretary General Baron Waqa emphasized the call for IDA donors to ensure a robust replenishment this year, expressing hope for a strengthened partnership with the World Bank Group to achieve common objectives.