THE 15TH REPLENISHMENT OF IDA

The 15th Replenishment of IDA

IDA is a revolving fund in which donor contributions are complemented by reflows from IDA’s highly concessional credits. IDA provides $10 billion to $11 billion a year in interest-free loans and grants. It needs additional resources to maintain this level of financial support for poor countries, particularly since debt relief has reduced IDA’s available credit reflows, thus increasing the reliance of both IDA and poor countries on future donor contributions.

Adequate replenishment of IDA is critical because of the enormity of the challenges facing the 2.55 billion people who live in IDA-recipient countries. These countries face a variety of conditions—some are emerging from conflict, some are in the midst of economic transition, some are vulnerable to crisis, and some are experiencing rapid and sustained growth. IDA’s ability to address the complex and diverse needs of these countries can help them achieve their development goals.

IDA donors convened in Paris in March 2007 and in Maputo in July 2007 to discuss IDA’s 15th replenishment. During the negotiations, they identified three special themes for further discussion. The first is the role of IDA in the global aid architecture at the sectoral, country, regional, and global levels, including its support for debt sustainability. The second is the effectiveness of IDA’s assistance at the country level, including analysis of resource allocation and development outcomes, achievement and measurement of results, and progress in harmonizing and aligning assistance.

The third encompasses IDA’s strategy, instruments, and operational response in supporting fragile states; its financing for fragile states; and a systematic approach to arrears clearance. Two more meetings will be held to discuss the 15th replenishment, at which donors will be expected to confirm their contributions.