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Developing Countries: Overseas Aid

Volume 478: debated on Thursday 26 June 2008

To ask the Secretary of State for International Development what projections have been made of future donor funding for the World Bank’s International Development Association; and what change he expects there to be to the UK contribution in each of the next five years. (213243)

The negotiations for the 15th replenishment of the International Development Association (IDA 15) concluded in December 2007. 45 donor countries pledged a record £12.6 billion over three years to further the cause of overcoming poverty in the poorest low income countries. As a result of this donor funding the World Bank’s IDA will be able to provide £21 billion over the period 2008-11 to the poorest 80 countries in the world.

The UK has pledged to provide the World Bank £2.134 billion to IDA 15 over the next three years, 2008-11—a 49 per cent. increase over its contribution to IDA 14 (2005-08). The UK Government will be seeking parliamentary approval for this contribution next month. The UK contribution for the period after 2011 will be determined during the IDA 16 negotiations which are scheduled to commence in March 2010.

In addition to this, donors including the UK have agreed to provide compensation to IDA for the costs of providing debt relief under the Multilateral Debt Relief Initiative (MDRI). Over the next five years the UK contribution for MDRI to IDA is estimated to be £240 million however this is dependant on progress of countries through the Heavily Indebted Poor Countries (HIPC) initiative.