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UNITED STATES—US President Joe Biden has committed a $4 billion contribution to the World Bank’s International Development Association (IDA) fund, to assist poorest countries of the world.
This was made known by a senior Biden administration official on Tuesday.
This commitment was announced during a closed session at the Group of 20 summit in Rio de Janeiro.
The US Treasury is currently leading negotiations for the IDA replenishment, even as the new pledge surpasses the $3.5 billion committed by the US during the previous replenishment round in December 2021.
But with the new President-elect Donald Trump, it is uncertain whether he will propose foreign aid reduction or honour Biden’s commitment.
Trump, alongside Tesla and SpaceX CEO Elon Musk, is spearheading a government efficiency panel aimed at cutting US spending.
Congress will unlikely appropriate funds for the pledge until after Trump assumes office in January.
Reacting to the pledge, a spokesperson for Trump’s transition team declined to comment on the matter.
Earlier in Rio de Janeiro, US Deputy National Security Adviser Jonathan Finer described Biden’s upcoming announcement as a “historic” pledge to the IDA replenishment.
Finer also confirmed Biden plans to launch a bilateral clean energy partnership during a meeting with Brazilian President Luiz Inácio Lula da Silva on Tuesday.
The World Bank’s IDA fund provides grants and low-interest loans to the poorest nations and is replenished every three years. A pledging conference is scheduled for December 5-6 in Seoul.
World Bank President Ajay Banga is pushing for a record replenishment, aiming to exceed the $93 billion secured in December 2021.
Statistically, Biden’s pledge represents a 14.3% increase from the US commitment in 2021.
