WASHINGTON, July 14, 2022 – In the just-completed fiscal year 2022 (FY22), the World Bank Group responded to an unprecedented scale to overlapping global crises, providing advice and financing in response to the sharpest economic slowdown in eight decades, growth of inflation. deepening food insecurity, war and fragility, and the ongoing negative impact of the COVID-19 pandemic.
Amid these devastating crises, the World Bank Group set a record of $114.9 billion in FY22 (July 1, 2021-June 30, 2022). Engagements during FY22 were informed by our knowledge work and helped countries address rising food prices, manage refugee flows, strengthen health preparedness, preserve private sector trade, and support efforts to mitigate and adapt to climate change , among others, especially benefiting the poor and the majority. unprotected.
“Developing countries are facing multiple challenges – from war to rising food and energy prices – that are deepening inequality and leading to shifts in the benefits of development,” said World Bank Group President David Malpass. “The World Bank Group has responded with urgency, scale and impact. We have delivered successive increases in funding, analytical support and policy advice, first in response to the COVID-19 pandemic and now to address the food crisis, the war in Ukraine and its spillover effects.”
The World Bank (IBRD and IDA) committed $70.8 billion in aid in FY22, its highest level of commitments ever, nearly 70% higher than the average pre-crisis commitments from FY13 to FY19. This figure included $33.1 billion from the International Bank for Reconstruction and Development (IBRD) in support of middle-income countries as well as some higher-income countries and $37.7 billion in zero- or low-interest grants and loans to countries poorest in the world. from the International Development Association (IDA). IDA commitments to countries facing fragility, conflict and violence (FCV) totaled $16.2 billion, accounting for 43% of total IDA commitments in FY22.
To meet the increased demand for financing during FY22, the World Bank fully utilized all remaining resources from the IDA19 replenishment. As a result, IDA20 replenishment was advanced by one year, providing $93 billion in continued support to poor countries until June 2025. The IBRD was also able to increase resources, drawing on a crisis buffer adjusted to growth capital in 2018 to increase its financing.
Since the start of the COVID-19 pandemic, total World Bank Group financing has reached $272 billion, including $52.6 billion in the last quarter of FY22. For the 15 months from April 2022 to June 2023, funding is expected to reach $170 billion. A significant component of this funding will be devoted to food security, including social protection and projects in agriculture, food, water and irrigation. The World Bank has made about $30 billion available over these 15 months as part of a comprehensive global response to the ongoing food security crisis, about $12 billion of which will be new lending informed by our core data and analytical work on food and nutrition. systems. Since April 1, the World Bank has conducted 32 operations related to the food crisis and has committed $5.3 billion in this area.
The World Bank continued to rapidly increase its climate financing in FY22, in line with the World Bank Group Climate Change Action Plan (CCAP) 2021-2025, which aims to commit 35% of Bank Group financing for climate, on average, with at least 50% of World Bank climate finance supporting adaptation. World Bank climate finance reached a record $26 billion (37% of commitments) in FY22, an 83% increase from $14.2 billion in FY19. At $12.8 billion, the FY22 adjustment share came in at 49%, just short of the 50% target and an all-time dollar high. As part of CCAP, the World Bank Group has begun publishing Country Climate and Development Reports (CCDRs), new core diagnostic reports that integrate climate change and development considerations and help countries prioritize the most impactful actions they can take. reduce greenhouse gas emissions and promote adaptation. . Reports on Turkey and Vietnam have been published, with over 20 more nearing completion and expected in the coming months.
The World Bank continued to focus on COVID-19 during FY22, with pandemic response financing reaching $72.8 billion between April 2020 and June 2022, including $37.6 billion and $35.1 billion in IBRD and IDA commitments, respectively. As of June 30, 2022, the World Bank has approved $10.1 billion in financing for the purchase and deployment of vaccines in 78 countries, of which $4.6 billion is for 42 countries in Africa. Over 600 million doses have been contracted with financing approved by the Bank, of which over 430 million have been delivered. The Bank is also establishing a financial intermediary fund to strengthen pandemic prevention, preparedness and response (PPR) capacities at the national, regional and global levels, with a focus on low- and middle-income countries. With over $1 billion in financial commitments already announced, the fund will bring additional resources dedicated to PPR, stimulate countries to increase investment, improve coordination between partners and serve as a platform for advocacy.
Progress was also made in efforts to fully incorporate women into the economy. An unprecedented 90% of World Bank FY22 operations are helping to close gender gaps, far more than corporate commitments.
The World Bank and IFC continued to mobilize private capital through bond markets in FY22. The IBRD raised about $41 billion and the IDA raised about $10 billion from investors in the capital markets to finance sustainable development activities. IFC issued just over $9 billion in bonds for private sector development and job creation in emerging markets. IBRD, IDA and IFC are rated AAA/Aaa.
The World Bank Group plays a critical role in building and empowering the private sector in developing countries. IFC had a record year in FY22 with commitments reaching an all-time high of $32.8 billion, including $12.6 billion in commitments for IFC’s own account, of which $3.5 billion went to IDA countries and fragile and vulnerable situations. affected by conflict (FCS). As banks cut back on trade financing, the IFC stepped in to sustain import-export businesses, committing a record $9.7 billion in trade financing, almost 70% of which was in IDA and FCS countries. Climate finance was also an area of continued strong performance for IFC, with volumes reaching $4.4 billion, surpassing previous records and reaching 35% of commitments on own account. Since the start of the pandemic, IFC has committed $21.2 billion to 147 COVID response projects. Long-term COVID-related liabilities for the IFC’s own account totaled $5.4 billion in FY22.
The Multilateral Investment Guarantee Agency (MIGA), whose mandate is to direct impact foreign direct investment in developing countries, issued $4.9 billion in new guarantees, of which 32% were to IDA countries, 12% were in FCS countries and 28% supported the climate. finance.
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