East Asia & Pacific - World Bank Group Increases Support for Developing Countries by 11% in 2008

September 17, 2008—The World Bank Group increased support to the developing world by $3.9 billion—11 percent—over 2007 levels as global challenges mounted in 2008.

Efforts included spearheading a drive to deliver funds rapidly to nations hit by food price shocks, replenishing the fund for the world’s poorest countries, and stepping up efforts to stimulate job growth and foreign direct investment during the Bank’s 2008 fiscal year, which ended June 30.

“In a year that saw rising food and fuel prices become the harsh new reality, the $38.2 billion provided by the World Bank Group to developing countries helps create development solutions so people can have the opportunity and means to improve their lives,“ says World Bank Group President Robert B. Zoellick.

Food Price Crisis Response
Shortages and sharply higher prices around the globe sparked the creation of a $1.2 billion rapid financing facility to speed assistance to the hardest-hit countries. The plan complements a New Deal on Global Food Policy endorsed in April by 150 countries.
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Fund for World’s Poorest Countries (IDA)
IDA committed US$8 billion in credits and $3.2 billion in grants to 78 of the world’s poorest countries, and secured a record $41.7 billion in funding for FY2009 – FY2011.
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Africa
Bank Group loans, credits and grants for Africa hit a record $7.3 billion in 2008, including $5.7 billion from the fund for the poorest countries, IDA, $1.4 billion from IFC, $218 million in MIGA guarantees for projects in the region, and $30 million from IBRD. Additional funding from the new rapid financing facility went to several countries hit hard by the food crisis. The Bank Group approved 91 projects and completed 108 economic and sector work activities. It also pledged to increase lending for agriculture in Africa from $368 million in fiscal 2008 to $650 million in fiscal 2009 and to $800 million in fiscal 2010.
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Private Sector Financing (IFC)
International Finance Corporation provided $16.2 billion in private-sector financing, an increase of 34 percent over 2007, with about 40 percent of projects in the poorest countries. Client firms created 1.9 million jobs in 2007, bought $54.3 billion in local goods and services, generated power for nearly 147 million customers in developing countries, and distributed water to 18 million consumers. more
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Foreign Direct Investment (MIGA)
The Multilateral Investment Guarantee Agency backed foreign direct investment in some of the world’s poorest countries with $2.1 billion in guarantees, a 50 percent increase over the previous year. The agency supported 15 projects in IDA-eligible countries with over $689 million in investment guarantees.
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World Bank Group Increases Support for Developing Countries by 11% in 2008