Biden pledges $4 billion to fund poor countries

US President Joe Biden has pledged $4 billion to the World Bank's International Development Association (IDA) fund for the world's poorest countries, according to a US official.

President Biden announced the US commitment over three years during a closed-door meeting of the G20 summit in Rio de Janeiro, Brazil, the official told Reuters. The official also said the US Treasury Department is leading negotiations at the World Bank on replenishing IDA funds.

US President Joe Biden speaks at the launch of the Global Alliance to Fight Poverty at the G20 Summit in Rio de Janeiro, Brazil, on November 18.

The new US commitment is a record and far exceeds the $3.5 billion Washington pledged in the previous IDA replenishment round in December 2021, according to Reuters.

It is unclear whether President-elect Donald Trump, who has proposed cutting foreign aid in the past, will follow through on President Biden’s pledge as he and billionaire Elon Musk seek to cut U.S. spending through a new government efficiency commission. Congress will not fund Biden’s pledge until Trump takes office in January 2025.

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The World Bank's IDA fund, which provides grants and very low-interest loans to the poorest countries, is replenished every three years and a conference to call for contributions is scheduled for December 5-6 in Seoul, South Korea.

World Bank President Ajay Banga is aiming to raise a record $93 billion in financing by December 2021, amid growing demand from poor countries in Africa and elsewhere struggling with massive debts, climate disasters, conflict and other pressures.

An additional $120 billion is possible, but that target would require some significant increases in national commitments, Mr. Banga told Reuters in October.

Source: https://thanhnien.vn/ong-biden-cam-ket-dong-gop-4-ti-usd-vao-quy-giup-nuoc-ngheo-185241119081310185.htm