Aid from two World Bank entities hit record $100b in 2022

This helps to address issues ranging from food insecurity to restoring growth. PHOTO: REUTERS

WASHINGTON - Two World Bank entities provided a record $75 billion (S$100 billion) in financing in 2022, said a letter by its president, as developing countries faced crises like climate change and Russia’s invasion of Ukraine.

The aid comes as countries emerging from the Covid-19 pandemic were hit by fallout from war in Ukraine and surging inflation, while climate change brought further devastation, said World Bank President David Malpass in a letter seen by AFP.

The assistance last year was 35 per cent above the past four years’ average, he said.

The World Bank’s assistance also came as part of a global crisis response package, involving up to US$170 billion in financing over 15 months.

This helps to address issues ranging from food insecurity to restoring growth, Mr Malpass said in the letter to the bank’s governors – typically countries’ finance ministers or other officials.

In particular, the World Bank delivered US$31.7 billion in climate finance last year and channelled another US$18 billion towards Ukraine since the start of the war.

The bank has worked to fund essential Ukrainian government services, while preparing a new series of operations to address urgent needs and repairs in key sectors like health and energy.

Overall, the record funds came through the International Bank for Reconstruction and Development, as well as the International Development Association.

“Looking ahead to 2023, the world is facing equally daunting challenges,” said Mr Malpass.

He added that “it is vital to reduce unsustainable debt burdens, promote debt transparency, and boost investment to increase jobs, productivity, and production”. AFP

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