Mongolia Becomes IDA Donor, Turning Its Development Gains Into Support for Others

IDA support has helped Mongolia invest in transport, rural development, health and education, sectors that touch everyday life through access to services, infrastructure and economic opportunities.

Mongolia is taking on a new role in international development, becoming a donor to the World Bank Group's International Development Association (IDA) after decades of receiving support. Parliament has approved a contribution of MNT 4.8 billion, approximately US$1.3 million, to help low-income countries finance their development priorities.

The contribution marks a milestone for a country that joined the World Bank Group in 1991 and has since received more than US$1.62 billion in development financing. IDA support has helped Mongolia invest in transport, rural development, health and education, sectors that touch everyday life through access to services, infrastructure and economic opportunities.

Three decades of progress bring a new role

Mongolia has significantly reduced poverty and tripled its per-capita gross domestic product over the past thirty years, reaching upper-middle-income status in 2024.

Its relationship with the World Bank Group has changed alongside that progress. In July 2020, Mongolia graduated from IDA and became a client borrowing exclusively from the International Bank for Reconstruction and Development (IBRD), the institution serving middle-income and creditworthy lower-income countries.

Becoming an IDA donor adds another chapter to that relationship, giving Mongolia a way to support countries facing development challenges it understands from its own experience.

"Mongolia's contribution to IDA21 marks an important milestone in our longstanding partnership with the World Bank and reflects our commitment to international solidarity," said Finance Minister Mendsaikhan Zagdjav.

Experience with development finance shapes the contribution

Mongolia's contribution supports IDA's 21st replenishment, known as IDA21, and reflects its commitment to helping countries address pressing development needs.

Zagdjav said Mongolia's firsthand experience with IDA had shown the importance of concessional financing in reducing poverty, building resilience and expanding opportunities. He connected the decision to contribute with the country's continuing work on its own development priorities.

"As we continue to advance Mongolia's own development priorities, we are proud to support other countries in pursuing theirs," he said.

Lisa Finneran, the World Bank's Vice President for Partnerships, Innovation and Mobilization, welcomed Mongolia into the donor community and thanked it for supporting other countries' efforts to build greater prosperity.

"Mongolia's rise shows what development progress can make possible," she said.

Supporting opportunities across 78 countries

IDA is the World Bank Group's fund for 78 low-income countries, providing grants and financing on highly concessional terms to reduce poverty, strengthen resilience and improve lives.

The fund is replenished every three years through contributions that sustain its work. Negotiations for IDA21 concluded in December 2024, and the replenishment currently finances operations across 78 countries.

Mongolia's contribution brings its own experience of development into that shared effort. A country that used IDA support to help meet domestic needs is now contributing resources so others can invest in their people and future.