Eurodad's proposals for a WB IDA20 replenishment package that delivers for the most vulnerable


Eurodad calls for an ambitious IDA20 replenishment package that ensures that developing countries have access to concessional resources to address their democratically-determined recovery needs.

Eurodad’s recommendations on IDA20 replenishment address four Special and Cross-cutting themes of IDA20:  Jobs and Economic Transformation (JET), Human Capital, Climate Change and Debt. We highlight the limits of market-based solutions, the necessity of ending privatisation in health and education, whilst also advocating for ways of supporting inclusive business models. Our proposals further address the urgency of global debt and climate change by calling for debt cancellation and implementing a do no harm principle in projects to ensure environmental sustainability. 

Specific demands include:

Jobs and Economic Transformation (JET) 
  • Channelling of IDA resources to inclusive businesses through domestic public development banks, where they exist, instead of private commercial financial intermediaries.
  • Prudent use of IDA’s limited concessional resources. Considering the dearth of evidence on development additionality, resources should not be diverted to IDA’s PSW.
  • JET should be accompanied by Results Management System (RMS) indicators which provide clear evidence of additionality through sustainable, decent and quality job creation.
Human Capital
  • The term ‘human capital’ should be changed to ‘human development’ in IDA20 to focus on development as a human rights issue.
  • All approaches towards human development should remove privatisation as a modality of provision in health and education.
  • The human development theme should be accompanied by an indicator which demonstrates how public financing through IDA20 led to an increase in national budget expenditure for health, education and social protection.
Climate Change
  • A do no harm principle must be applied to all projects to ensure that the environment and biodiversity are not adversely affected by projects, and to ensure that projects do not exacerbate climate change impacts. 
  • Activities must exclude fossil fuel financing, support energy access, a reduction in fuel poverty and a just transition for industries and workers in fossil fuel generating developing countries. 
  • Policies should support community-based adaptation, and provide targeted grants-based financing for adaptation, loss and damage, and sustainable finance.
  • IDA should strengthen the valuation models used for climate risk and integrate a country’s vulnerability into project valuation to climate change.
  • Provide multilateral debt restructuring and cancellation to all countries in need.
  • Promote an open review of the debt sustainability concept towards one that includes environmental and climate vulnerabilities, and with human rights and other social, gender and development considerations at its core.
  • Include State Contingent Clauses in all new IDA lending agreements. 

Read the full paper here