World Bank Group responds to overlapping crises with nearly $115 billion in financing in fiscal year 2022 – Global
WASHINGTON, July 14, 2022—In its just-concluded fiscal year 2022, the World Bank Group responded with unprecedented scale to overlapping global crises, providing advice and financing in response to the deepest economic downturn in eight decades, rising inflation, worsening food insecurity, war and fragility, and the continued negative impact of the COVID-19 pandemic.
Amid these devastating crises, the World Bank Group deployed a record $114.9 billion in FY22 (July 1, 2021-June 30, 2022). Engagements in FY22 were informed by our knowledge work and helped countries address rising food prices, manage refugee flows, strengthen health preparedness, maintain private sector trade and to support climate change mitigation and adaptation efforts, among others, for the benefit in particular of the poor and most vulnerable.
“Developing countries face multiple challenges – from war to soaring food and energy prices – that are deepening inequalities and reversing development gains,” said the Chair of the Task Force. the World Bank, David Malpass. “The World Bank Group responded with urgency, scale and impact. We have committed consecutive increases in funding, analytical support and policy advice, first in response to the COVID-19 pandemic, and now to address the food crisis, the war in Ukraine and its fallout.
The World Bank (IBRD and IDA) committed $70.8 billion in aid in FY22, its highest ever level of commitment, nearly 70% above the average for pre-crisis from FY13 to FY19. This figure included $33.1 billion from the International Bank for Reconstruction and Development (IBRD) in support of middle-income countries as well as a few high income and $37.7 billion in grants and zero- or low-interest loans to the world’s poorest countries. of the International Development Association (IDA). IDA commitments to countries facing fragility, conflict and violence (FCV) reached $16.2 billion, or 43% of total IDA commitments in FY22 .
To meet the increased demand for financing in FY22, the World Bank fully utilized all remaining IDA19 replenishment resources. As a result, the IDA20 replenishment was brought forward by a year, providing $93 billion in continued support to poor countries through June 2025. The IBRD was also able to increase its resources, drawing on a crisis buffer planned in the capital increase in 2018 to increase its funding. .
Since the start of the COVID-19 pandemic, total World Bank Group financing has reached $272 billion, including $52.6 billion in the last quarter of FY22. For the 15 months of April 2022 to June 2023, funding is expected to reach $170 billion. A significant portion of this funding will be devoted to food security, including social protection and projects in the areas of agriculture, nutrition, water and irrigation. The World Bank has made available approximately $30 billion over these 15 months as part of a comprehensive global response to the current food security crisis, of which some $12 billion will be new lending, informed by our substantial data and our analytical work on food and nutrition. systems. Since April 1, the World Bank has executed 32 operations related to the food crisis and committed $5.3 billion in this area.
The World Bank continued to rapidly increase its climate financing in FY22, in line with the World Bank Group’s Climate Change Action Plan (CCAP) for 2021-2025, which aims to commit 35% of Bank Group climate finance, on average, with at least 50% of World Bank climate finance supporting adaptation. World Bank climate finance totaled a record $26 billion (37% of commitments) in FY22, an 83% increase from $14.2 billion in FY19 At $12.8 billion, FY22 adaptation share reached 49%, just short of the 50% target, and an all-time high in dollars. Under the CCAP, the World Bank Group has begun publishing Country Climate and Development Reports (CCDRs), new baseline diagnostic reports that integrate climate change and development considerations and help countries to prioritize the most effective actions that can reduce greenhouse gas emissions and drive adaptation. . Reports on Turkey and Vietnam have been published, and more than 20 more are nearing completion and expected in the coming months.
The World Bank continued to focus on COVID-19 in FY22, with pandemic response funding reaching $72.8 billion between April 2020 and June 2022, including $37.6 billion in and $35.1 billion of IBRD and IDA commitments, respectively. As of June 30, 2022, the World Bank has approved $10.1 billion in funding for vaccine procurement and deployment in 78 countries, including $4.6 billion for 42 countries in Africa. Over 600 million doses have been contracted with Bank-approved financing, of which over 430 million have been delivered. The Bank is also setting up a Financial Intermediary Fund to build pandemic prevention, preparedness and response (PPR) capacities at national, regional and global levels, with a focus on low-income countries. and intermediate. With over $1 billion in financial commitments already announced, the fund will provide additional resources dedicated to PPR, incentivize countries to scale up investments, improve coordination among partners and serve as a platform for advocacy.
Progress has also been made in efforts to fully integrate women into economies. An unprecedented 90% of World Bank operations in FY22 contribute to closing gender gaps, well beyond corporate commitments.
The World Bank and IFC continued to raise private capital through bond markets in FY22. IBRD raised about $41 billion, and IDA raised about $10 billion from investors on the capital markets, to finance sustainable development activities. IFC has issued just over $9 billion in bonds for private sector development and job creation in emerging markets. IBRD, IDA and IFC are rated AAA/Aaa.
The World Bank Group plays a critical role in building and empowering the private sector in developing countries. IFC had a banner year in FY22 with commitments reaching a record high of $32.8 billion, including $12.6 billion in commitments for its own account, including $3.5 billion went to IDA countries and countries in situations of fragility and conflict (FCS). As banks cut trade finance, IFC stepped in to maintain import-export business, committing a record $9.7 billion in trade finance, with nearly 70% in IDA and FCS countries . Climate finance was also an area of continued strong performance for IFC, with volumes reaching $4.4 billion, surpassing previous records and reaching 35% of own-account commitments. Since the start of the pandemic, IFC has committed $21.2 billion to 147 COVID response projects. Long-term COVID-related commitments for IFC’s own account reached $5.4 billion in FY22.
The Multilateral Investment Guarantee Agency (MIGA), whose mandate is to generate effective foreign direct investment in developing countries, issued $4.9 billion in new guarantees, including 32% in IDA countries, 12 % in FCS countries and 28% for the climate. finance.
In Washington : David Theis, (202) 458-8626, [email protected]
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