Korea Provides US$30 Million for Poverty Reduction and ICT Support

Contacts

In Washington: Elisabeth Mealey (202) 458 4475
EMealey@worldbank.org;

Roger Morier (202) 473 5675
rmorier@worldbank.org

Washington, October 29, 2007 - The Government of Korea has established two trust funds worth US$30 million that will help countries further their poverty reduction efforts and deliver government services more effectively.

At a signing event at the World Bank headquarters in Washington last week, Jim Adams, Vice President for the World Bank’s East and Asia and Pacific region and Katherine Sierra, Vice President for Sustainable Development, welcomed the establishment of the two funds – a US$15 million Poverty Reduction and Socio-Economic Development Trust Fund for East Asia and Pacific countries and a US$15 million Information and Communication Technologies for Development (ICT4D) trust fund.

Adams said the poverty trust fund would support activities and analysis that fit with East Asian and Pacific recipient countries’ poverty reduction strategies. The Government of Korea will provide US$15 million for the first year with further resources available based on progress. The fund will co-finance World Bank lending operations on a grant basis and provide resources for analytical and advisory support, technical assistance and training.

“This is a generous and very welcome initiative that will help countries in our region as they strive to overcome poverty and deliver services more effectively for their people,” Jim Adams said.

The ICT4D trust fund will draw on Korea's extensive experience in the information and communications technology sector and the World Bank Group's ICT expertise.

The ICT4D Trust Fund will provide US$15 million over the next three years to projects worldwide, also with the possibility for replenishment depending on progress. The trust fund is expected to support such activities as the integration of ICT into the delivery of government services to citizens and enabling innovation in small and medium enterprises in developing countries.

“The impact of information and communications technologies on economic growth and poverty reduction can be dramatic,” said Katherine Sierra. “More than ever, we are seeing and appreciating the links between work in ICT and development outcomes on the ground.  The Government of Korea, through this funding mechanism, is a very welcome partner in all of these initiatives.”