The UK has announced a significant £1.98 billion investment in the International Development Association (IDA), the World Bank’s fund dedicated to supporting the world’s lowest-income countries. This three-year pledge underscores a renewed partnership between the UK and the Global South, aimed at driving economic growth, reducing poverty, and addressing global challenges such as climate change and irregular migration.
Development Minister Anneliese Dodds unveiled the pledge today, emphasizing that the UK’s contribution will unlock billions in additional funding from other sources, including private markets. IDA operates with a unique funding mechanism that leverages up to $4 for every $1 pledged by donor countries. This funding will come from the UK’s Official Development Assistance (ODA) budget.
IDA, the largest provider of grants and low-interest loans for vulnerable nations, supports over 1.9 billion people globally. Over the last three years, it has delivered $93 billion in finance to 75 countries, including 39 in Africa. Its programs have supported over 86.5 million children with access to education and provided 75 million people with improved electricity services, fostering economic growth and lifting millions out of poverty.
Foreign Secretary David Lammy commented on the announcement, stating, “Growth and stability in lower-income countries is firmly in the UK’s interest. If we are to grow our economy, tackle the climate crisis, and reduce irregular migration, we need to work in partnership with these countries. IDA’s track record shows it is one of the best ways to achieve this. I urge other donors to step up at next week’s conference.”
Minister Anneliese Dodds added, “Britain is back with a voice on the world stage. Our new approach to development is rooted in genuine partnerships and respect. When leaders of low-income countries called for stronger IDA contributions, we listened. This funding will unlock billions to support economic growth, changing and saving lives.”
A Modern Approach to Development
The UK’s renewed commitment to IDA reflects its modernized approach to international development, built on respect, partnership, and shared interests. Since its inception in 1960, IDA has enabled 36 countries to graduate from low-income status. South Korea, once a beneficiary of IDA funding, is now a global economic powerhouse and will host the upcoming donor conference.
The UK’s support for IDA aligns with the government’s development strategy, outlined by Minister Dodds in a speech at Chatham House in October. This strategy emphasizes four key priorities: fostering genuine partnerships, reforming multilateral institutions, leveraging UK expertise, and promoting global opportunity for all.
With this pledge, the UK reaffirms its commitment to fostering sustainable growth in low-income nations, benefiting both recipient countries and the global community.
