Sweden provides SEK 8.2 billion to International Development Association

The 21st replenishment of the IDA concluded in Seoul, South Korea on 5–6 December. It comes at a time of stagnating social and economic development in many low-income countries around the world. In recent years, these countries have also been hit by rising debt levels, increasing climate risks and limited access to funding due to increased economic and geopolitical uncertainty. 

“The Government’s pledged support of SEK 8.2 billion to the IDA is an investment in the future for the world’s low-income countries and for Sweden. The IDA plays an important role in supporting reform efforts and improving the local investment climate in poor countries. No country has ever lifted itself out of poverty through development assistance alone. The aim is for recipient countries to be in a position to steer their own development in the long run,” says Minister for International Development Cooperation and Foreign Trade Benjamin Dousa. 

The IDA’s innovative financing model means that every krona of development assistance invested equates to three and a half to four kronor in financing. The work programme for the next three years encompasses total financing of USD 100 billion that will reach 1.9 billion people in 78 of the world’s poorest countries. The thematic focus is on areas that the Swedish Government prioritises, including employment, private investments, support to refugees and host communities, and the climate. At least 45 per cent of financing will go to climate measures.

With this pledge of SEK 8.2 billion, Sweden remains one of the most generous donors to the IDA, and the most generous in proportion to the size of its economy. The IDA is currently the single largest recipient of core support from the Swedish Government.