Britain's Bold Pledge: Boosting Global Growth and Addressing Climate Change

Britain commits to investing £1.98 billion in the World Bank's IDA fund to aid low-income countries. This investment supports projects fostering economic growth and combating climate change. A replenishing conference will seek more contributions, with the IDA aiming to surpass its previous $93 billion mark.

The United Kingdom announced a substantial investment of £1.98 billion ($2.5 billion) over the next three years into the World Bank's International Development Association (IDA) fund. This investment aims to support projects that promote economic growth, alleviate poverty, and tackle the impacts of climate change, according to a government statement.

The IDA fund primarily provides grants and low-interest loans to the world's poorest nations and is replenished triennially. An upcoming pledging conference set for December 5-6 in Seoul aims to secure record contributions, following a $93 billion replenishment in 2021. World Bank President Ajay Banga is targeting a higher amount amid growing demands from impoverished countries grappling with debts, climate emergencies, and conflicts.

Recently, U.S. President Joe Biden also committed a $4 billion contribution to the IDA fund. In Britain, the Labour government under Prime Minister Keir Starmer, which has been in power since July, has committed to restoring the foreign aid budget to its former level of 0.7% of gross national income, though no timeline has been specified.

(With inputs from agencies.)