Pandemic Action Network (PAN) and Resilience Action Network Africa (RANA) are working with partners to provide African ministers and International Development Association (IDA) shareholders with the opportunity to attend the World Bank Group and IMF Annual Meetings. In response, we urge African countries to promote strong IDA21 replenishment. the needs of each country. Achieving the “largest IDA in history” is an ambition that we all must strive to achieve. IDA21 should also offer favorable financing terms to countries facing severe economic headwinds and support needed investments in human capital, jobs and resilience to secure Africa’s future. .
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Background: IDA is a much-needed tool to strengthen Africa’s development and resilience, especially in the wake of COVID-19 and ongoing health, economic, and climate risks.
IDA is the largest source of subsidies and low-cost loans to the world’s 75 poorest countries, 39 of which are in Africa, accounting for 70 percent of IDA’s loan commitments. This source of funding is an important tool for governments to drive economic transformation, job creation and social growth, enabling long-term investment in long-term projects on favorable terms that support financial growth and sustainability. Helpful. IDA is also one of the few institutions that can leverage donor contributions at scale, making it cost-effective.
IDA funding is needed now more than ever. The combined effects of the COVID-19 pandemic and subsequent economic downturn, accelerating climate change, food insecurity, a growing debt crisis, and other crises have led to half of IDA countries being labeled a “historic reversal” by the World Bank. This has led to economic growth that has widened income inequality with the richest countries, stalled efforts to reduce poverty and hunger, and derailed progress towards the Sustainable Development Goals. According to the World Bank’s own research, one in three IDA countries is now poorer than before the coronavirus pandemic began.
A strong replenishment of IDA21 would provide a strong counterbalance to these trends and increase affordable concessional financing for some of the most vulnerable countries. The country-led model also puts countries in the driver’s seat to unlock the potential of Africa’s youth population growth and address diverse national development priorities, including tackling growing global challenges such as pandemics, climate change and fragility. Funds can be mobilized to tackle challenges.
The need: A strong IDA21 replenishment that delivers on the diverse priorities of African countries.
To best support the needs and realities of African countries, IDA21 must:
Promote action towards replenishment that significantly exceeds IDA20 in real terms. The final IDA replenishment fiscal package must be truly additive, facilitating and complementing other long-term investments that promote resilience, growth, and equity. Denmark’s recent commitment to increase IDA contributions by 40 percent should serve as a benchmark for other wealthy donors, who must deliver on their ambitions and commitments with action and funding. Promote policy packages and commitments that support IDA21 countries to prioritize sustainable investments in human capital, including actions to address climate change and pandemics and build resilience to new threats. Expanding access to health and nutrition. Strengthen food security. Promote gender equality. Reduce the risk of private sector investments. It protects the most vulnerable communities and fosters job creation and economic transformation. Maintaining flexible and concessional financing terms in IDA21, facilitating broader access to IDA financing, especially for red-light and debt-crisis countries, and providing the flexibility for countries to increase investment in human capital and social sectors. make it possible to increase Prioritize and strengthen support for public engagement and civil society participation in all aspects of IDA21 operations, increase transparency and accountability, and ensure that promoting equity is at the heart of IDA21 investments.
Key Messages and Calls to Action: In line with the Abidjan Accord, we urge African Ministers and all IDA shareholders to seize the opportunity of the World Bank Group-IMF Annual Meeting in October to build a strong coalition that responds to the needs of African countries. We request that the government promote the replenishment of IDA21. African countries. Achieving the “largest IDA in history” is an ambition that we all must strive to achieve. IDA21 will also provide financing on effective terms to countries facing severe economic headwinds, supporting investments at the scale needed in human capital, jobs and resilience to secure Africa’s future. need to.
Supporter:
Accountability Lab
SDG2 Advocacy Hub
african catalyst
africa forward
Afia Na Haki
Amref
Enaso
hungry for action
one
pandemic action network
Resilience Action Network
WACI Health
