Yesterday, the World Bank announced a US$93 billion package to replenish the International Development Association (IDA) - a financing package to help the world’s poorest countries. However, the Bank failed to provide details about how the funds will be allocated and the channels through which they will be spent.

Instead, in a closed-door meeting yesterday they told select civil society representatives that they would not publish any details until as late as March next year.

Farwa Sial, Senior Policy and Advocacy Officer at the European Network on Debt and Development (Eurodad) said: "CSOs have been highly critical of the dismal consultation process carried out in the year running up to the replenishment of this critical financial package. We are now further dismayed by the lack of transparency around how the funds will be used.

"Firstly, civil society called for a bigger IDA20 package reaching up to a US$100 bn, and so do not feel the current allocation is enough. On top of this we have no idea what is actually in the package.

"The emergence of the Omicron variant of the Coronavirus - and the historical levels of sovereign debt outlined by the IMF this week - illustrate the crucial need for a fund like this to be carefully managed. This package has the potential to be a highly effective way of strengthening public finance and deepening public services. But it is the design of the replenishment that is key to ensuring that the financial package works in the interests of the most vulnerable.

"One of the issues that we have repeatedly raised as being problematic in the IDA package is the so-called Private Sector Window which promotes the privatisation of healthcare.  We currently have no official information on this window, even though David Malpass, President of the World Bank, has remarked that IDA countries are lagging in Covid-19 vaccinations and economic recovery. This deficit cannot be addressed if IDA20 continues to promote private healthcare provision.

"We are now urging the World Bank to publish all details of the IDA20 replenishment as soon as possible. This incident comes soon after the scandal that led to the end of the Doing Business Report. Transparency and accountability are paramount to demonstrate that the Bank is making a genuine effort to reform."

ENDS

Media contact: Julia Ravenscroft, Communications Manager at Eurodad: [email protected]/ +44 7958 184 695.

NOTES TO EDITORS:

About IDA20:

The twentieth replenishment of IDA –or IDA20– will cover the period from July 2022 until June 2025. IDA20 has the potential to be an important source of resilience and recovery for countries in the midst of the global pandemic. While the replenishment cannot fully address the ongoing situation, including the concerning developments of developing countries' debt, access to concessional resources through IDA20 can be an effective way of strengthening public finance and deepening public services. The design of the replenishment is key to ensuring that the financial package works in the interest of the most vulnerable.