The World Bank plays a crucial role in addressing poverty, the climate crisis and rising inequality.
Gunn Jorid Roset
Director General, Norad
The World Bank’s Fund: An Effective Boost for Millions
A mother has her child vaccinated in Freetown, Sierra Leone.
122 million people gained access to social protection, 54 million gained new or improved access to electricity, 138 million gained broadband access, and 225 million gained access to health services. All of this occurred over the past three years thanks to IDA, the World Bank’s fund for low-income countries.
Amid a global pandemic and multiple overlapping crises, the International Development Association (IDA), the World Bank’s fund for the poorest countries, mobilised a record USD 97 billion to support the world’s most vulnerable.
IDA helped provide millions of people with social protection, electricity and broadband access. It also financed a wide range of climate measures and is the world’s largest provider of climate finance to the poorest countries. In short, IDA improved the quality of life for millions of people, created new opportunities, and offered hope for the future.
54 million people have gained new or improved access to electricity.
Helping countries out of poverty
For 65 years, IDA has financed long-term development in the world’s poorest countries, providing USD 600 billion to 116 countries.
Many of these countries have experienced significant economic growth and have gone from being recipients to becoming donors themselves. South Korea, China, Türkiye and India are good examples.
Norway has been a donor since the beginning and continues to be an important partner in IDA, both through financial contributions and through shaping IDA’s priorities and objectives.
A new Norwegian strategy
On March 20th, Norway launched a new and comprehensive strategy for cooperation with the World Bank for 2026–2030.
The World Bank is Norway’s largest single recipient of development assistance and one of the world’s most important institutions for development and climate action.
– The global landscape is marked by geopolitical instability, growing pressure to achieve the Sustainable Development Goals, and an increasingly fragmented aid system. In this context, strong and effective multilateral cooperation is not just important – it is essential, says Gunn Jorid Roset, Director General of Norad.
She highlights that IDA is particularly important because it delivers strong results efficiently for those who receive aid.
Minister of International Development Åsmund Aukrust emphasises that Norway will support the World Bank’s core priorities, while also working to strengthen Norwegian priorities in its cooperation with the Bank. He emphasises on gender equality, climate and nature, renewable energy, decent work and food security.
Norway will support the World Bank’s work where needs are greatest, including in fragile and conflict-affected countries.
Norwegian funding delivers results
In 2022, the world faced several major crises that reinforced one another. For the first time in a generation, global poverty increased. The pandemic was a major contributing factor. The purpose of IDA20, established that year, was to help the poorest countries recover lost ground and work towards achieving the Sustainable Development Goals. IDA20 financed more than 700 projects in 78 countries. Around 70 per cent of the funding went to Africa.
Of the total USD 24 billion in donor contributions from 48 countries, Norway contributed NOK 3.3 billion. For every dollar contributed, IDA is able to provide nearly four dollars to the poorest countries in grants and highly concessional loans. This is why IDA20 was able to deliver USD 97 billion in financing to poor countries during the period 2023–2025.
Stronger tax systems and institutions
Through IDA, the World Bank works closely with partner countries to address some of the most complex development challenges.
30 per cent of IDA20 lending went to infrastructure projects.
27 per cent went to “prosperity”. This encompasses institutional strengthening and job creation.
IDA supported:
- 31 countries in implementing measures to tackle illicit financial flows
- 67 countries in developing better tax systems to strengthen domestic revenue mobilisation and improve the distribution of public revenues
- 50 countries in increasing debt transparency and promoting economic sustainability
Financing for investments in the social sectors – including education, health and social protection, accounted for 20 per cent of total financing.
The largest provider of climate finance
IDA is the world’s largest provider of climate finance to the poorest countries. Under IDA20, 41 per cent of IDA lending was climate-related, exceeding the target of 35 per cent. Of this financing, 58 per cent went to climate adaptation, also above the target of 50 per cent.
IDA20 set ambitious targets for recovery and resilience and achieved nearly 90 per cent of the targets set for the period.
Strong results from IDA20:
- 122 million people gained access to social protection systems, of whom more than 50 per cent were women. Support for social protection programmes was already scaled up under IDA19 in response to the pandemic. Looking at the full period 2020–2025, the total reaches 293 million people. IDA20 also helped ensure that 34 countries integrated adaptive social protection into national systems.
- 224.5 million people received health and nutrition services.
- 26.1 million people gained access to improved sanitation, and 22.2 million people gained access to safer water sources.
- 6.6 million farmers adopted improved agricultural practices.
- 54 million people gained new or improved access to electricity.
- 24 million people gained access to financial services, nearly five times more than expected.
- 138 million people gained access to broadband internet, opening up access to information, markets and services.