The World Bank announced on Thursday that it has raised nearly $24 billion to provide loans and grants to the poorest countries, which will generate a record $100 billion in total purchasing power.
Fundraising Details
Donor countries pledged $23.7 billion to replenish the bank’s loan fund, known as the International Development Association (IDA).
This contribution marks a slight increase from the approximately $23.5 billion committed in the fundraising round three years ago.
The World Bank can use this fund to borrow from financial markets, allowing for leveraging up to four times the amount raised and unlocking around $100 billion in new loans and grants.
Funds for the Poorest Countries
“These funds will be used to support the 78 countries most in need,” said Ajay Banga, President of the World Bank. This fundraising will help provide “resources to invest in health, education, infrastructure, and climate resilience,” in addition to contributing to stabilizing economies and creating jobs.
Which are the Poorest Countries?
The poorest country in the world is Burundi, with the lowest GDP per capita of approximately 280 euros per inhabitant. It is followed by Sierra Leone, Malawi, Central Republic, Madagascar, Somalia, South Sudan, Niger, and Mozambique.
The best indicator to assess which is the poorest country in the world is the Gross Domestic Product (GDP) per capita of each country. This indicator refers to the value of goods and services produced by an economy in a current year to determine the measure of economic activity of a country through the income available per person living in it.
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