Leaders from various Pacific Island nations have emphasized the need for a strong funding replenishment for the World Bank’s International Development Association (IDA21) in its upcoming 21st round. The IDA is crucial as it offers grants and concessional finance for those in dire need, effectively multiplying every donor dollar by four times to maximize the impact of investments, according to the World Bank.
The replenishment of the fund occurs every three years, with donor countries slated to meet in South Korea in December to finalize the commitments for this cycle. During a recent visit to the region, World Bank Group President Ajay Banga engaged with leaders from 11 Pacific countries who reiterated the vital role of IDA in aiding the islands’ efforts to enhance development and climate resilience.
Tonga’s Prime Minister Hu’akavemeiliku Siaosi Sovaleni, who chairs the 53rd Pacific Islands Forum Leaders’ Meeting, stated that if IDA21 is successful, the potential for transformative change in the Pacific is significant. He emphasized that with adequate support, Pacific nations can create a resilient and flourishing region for current and future generations.
During discussions, 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 goals established in the Pacific Islands Forum’s 2050 Strategy for the Blue Pacific Continent.
In a united statement, leaders called for enhanced access to concessional finance and backed the World Bank Group’s aim to allocate 45 percent of its funding to climate-related initiatives. They also praised ongoing improvements aimed at creating a more efficient World Bank Group, which would facilitate better access to financing, guarantees, and expertise for clients.
Baron Waqa, secretary general of the Pacific Islands Forum, urged IDA donors to ensure a robust replenishment for IDA this year and expressed optimism in furthering the partnership between the Pacific nations and the World Bank Group to achieve collective objectives.