WASHINGTON: US President Joe Biden has pledged a contribution of US$4 billion to the World Bank’s International Development Association fund for the world’s poorest countries, a senior Biden administration official said on Monday .
Biden announced the three-year U.S. commitment during a closed-door session of the Group of 20 summit in Rio de Janeiro, the official told reporters, adding that the U.S. Treasury led negotiations at the World Bank for the IDA replenishment.
The new US pledge is a record and far exceeds the $3.5 billion committed by Washington during the previous round of IDA replenishment in December 2021.
It’s unclear whether US President-elect Donald Trump, who has proposed cutting foreign aid in the past, will honor Biden’s pledge as he, billionaire Tesl and SpaceX CEO Elon Musk seek to cut U.S. spending through a new government efficiency panel.
An appropriation from the U.S. Congress to fund this commitment would likely not occur until Trump takes office in January. A spokesperson for Trump’s transition team did not respond to a request for comment on the matter.
A “historic” commitment
Earlier in Rio de Janeiro, U.S. deputy national security adviser Jonathan Finer told reporters that Biden would announce a “historic” commitment to replenishing the IDA.
Finer also told reporters at a G20 summit news briefing that Biden would launch a bilateral clean energy partnership when he meets with Brazilian President Luiz Inacio Lula da Silva on Tuesday.
The World Bank’s IDA fund, which mainly provides grants and very low-interest loans to poorer countries, is replenished every three years and a pledging conference is planned for December 5-6 in Seoul.
World Bank President Ajay Banga is targeting a record amount exceeding $93 billion to be repaid in December 2021, amid growing demands from poor countries in Africa and elsewhere that are struggling with crushing debts, climate disasters, conflicts and other pressures.
Banga said Reuters in October, that a replenishment of $120 billion is possible, but that this goal would require substantial increases in country commitments.
Biden’s new US commitment is about 14.3% higher than his 2021 contribution. At the IMF and World Bank annual meetings in October, Spain announced plans to increase its contribution by 37%. , at 400 million euros ($423 million).
Denmark announced in September a 40% increase in its contribution, bringing it to around $492 million.