New York, NY, December 7, 2023 —  The World Bank’s International Development Association (IDA) is the most important source of development finance for fragile and conflict-affected states (FCAS). At this week’s IDA20 Mid-Term Review in Zanzibar, donor partners, representatives from borrower countries, and World Bank management are assessing the progress made by IDA20 in developing countries. They will also launch the discussions for setting an ambitious replenishment and policy goals for IDA21, which will be launched at the end of 2024. In his remarks at yesterday’s launch of the Mid-Term Review, World Bank President Ajay Banga said the world is facing a perfect storm of intertwined challenges, including growing poverty, the climate crisis, and conflict, that is eroding progress on sustainable development. To reverse this trend, he called on donors to ensure that the next IDA replenishment will be the largest one yet.The International Rescue Committee (IRC) is echoing this call, with a specific focus on fragile countries that are conflict-affected and climate-vulnerable. 

Daphne Jayasinghe, IRC Policy Director, says: 

“The IRC is urging donors to pledge additional resources to the Crisis Facility to meet the $6 billion target by December 2023, boosting IDA resources for countries impacted by the war in Ukraine. Donors should deliver an ambitious IDA21 replenishment and collectively work to triple IDA funding by 2030, in line with the Independent Experts Group recommendations to the G20.

For FCAS, particularly countries that are both conflict-affected and climate-vulnerable – such as Niger and Yemen – IDA is a critical source of development support particularly for climate finance. IDA represents almost 60% of public climate finance for 14 of the 16 countries in the world that the IRC has identified as both climate-vulnerable and conflict-affected. With the climate crisis, conflict, and extreme poverty becoming more concentrated in a handful of countries, now is the time for strong donor commitments to IDA to support these countries’ development goals and work toward achieving climate justice.

Maximizing impact for communities in conflict-affected countries relies on reforms to World Bank delivery models alongside an increase in IDA financing. Through its Evolution Roadmap published this fall, the Bank has committed to deepening partnerships with civil society organizations to ensure that its interventions reach affected communities more efficiently. The IRC recommends the World Bank adopt a “people-first” approach to development finance and delivery, rather than relying exclusively on government partners, which are sometimes unwilling or unable to deliver critical services in FCAS. This approach, in conjunction with robust funding for IDA, will ultimately ensure that medium- and long-term development solutions will reach communities where they are most needed.”