Policy Updates

On April 19, 2024, the Netherlands pledged EUR68 million (US$74 million) towards World Bank hybrid capital, which is expected to expand the bank’s lending capacity by over US$550 million over the next ten years for global public goods investment.

Dutch Ministers of Finance and Foreign Trade and Development Cooperation Liesje Schreinemacher and Steven van Weyenberg announced the contribution to support low- and middle-income countries in financing the energy transition, biodiversity protection, and strengthening health systems to prevent future pandemics.

This commitment joins those of 10 other countries to boost the World Bank’s lending capacity, totaling US$11 billion and potentially providing up to US$70 billion in essential funds.

On April 17-19, 2024, the G7's Ministers of Foreign Affairs met in Capri, Italy, and released a communiqué summarizing the intents and goals of Italy's G7 presidency.

A new meeting is planned in Fiuggi in June 2024. The G7 Minister of Development's meeting in Pescara is scheduled for the end of October. The Italian Minister of Foreign Affairs is committed to continually working on some of the most urgent international crises.

The G7 Ministers expressed concern about rising food insecurity and malnutrition stemming from the combined impact of climate change, loss, and degradation of ecosystems, the growing number of conflicts, inflationary pressures, and the reduced fiscal space in many developing economies.

The ministers also emphasized the importance of strengthening PPR and global health, as well as supporting LGBTQI+ rights and SRHR. The communiqué also reaffirmed the need for strengthened international financial institutions and underscore the role of MDBs in achieving the SDGs, including in crisis-affected contexts.

On April 18, 2024, during the World Bank Spring Meetings, Norway announced a NOK250 million (US$22 million) hybrid capital contribution to boost the World Bank’s IBRD.

Through the World Bank's model for mobilizing private capital on favorable terms, the Norwegian contribution will enable up to NOK2 billion (US$181 million) to tackle issues such as climate change, food insecurity, pandemics, and poverty. Hybrid capital is a financial innovation that allows World Bank shareholders, including Norway, to significantly expand the IBRD’s lending capacity through unilateral voluntary contributions of new funds at any time.

Norwegian Minister of International Development Anne Beathe Tvinnereim noted that at a time with significant and increased needs for development assistance and climate financing, there is a need to mobilize larger investments. For every Norwegian krone provided to the IBRD, the World Bank will be able to unlock eight times the amount in financing.

On April 18, 2024, two main agencies involved in delivering the bulk of US emergency food assistance, USAID and the USDA, announced that they will begin to tap into US$1 billion in the Commodity Credit Corporation to distributed agricultural commodities around the world.

USAID identified 18 countries where the US will begin to purchase, ship, and then distribute needed commodities bought from US farmers, including the DRC, Ethiopia, Haiti, South Sudan, and Yemen. The planned collaboration between the two agencies was announced in October 2023 and will allow USAID to receive purchased commodities from USDA and then distribute them through USAID's channels.

On April 15 and 16, 2024, South Korea announced its plan to provide humanitarian assistance of US$12 million to Sudan and US$7 million to Ethiopia with in-kind rice at the International Humanitarian Conference for Sudan and Neighboring Countries and High-Level Pledging Event for the Humanitarian Situation in Ethiopia, respectively.

South Korea aims to help Sudan and neighboring countries to overcome the humanitarian crisis spurred by the armed conflict in the region.

The humanitarian assistance to Ethiopia, combined with 13,852 tons of rice in-kind, is aimed to help alleviate food shortages. In particular, South Korea’s Ministry of Agriculture, Food and Rural Affairs has been providing rice to countries in food crises every year through the WFP since its entry into the Food Assistance Convention in 2018.

On April 16, 2024, the Spanish cabinet approved a new voluntary contribution of EUR2 million (US$2 million) to the Organization of American States, aimed at strengthening human rights and democratic institutions in the Latin America and the Caribbean region.

Director of AECID Antón Leis made the announcement during a visit to the organization's headquarters in Washington DC. Leis underlined the importance of the partnership between Spain and the Organization of American States, particularly with regards to the AECID’s Programa Democracia, which is focused on improving political representation, protecting human rights, and fostering political and social dialogue in partner countries.

AECID's contribution was EUR 2 million (US$2 million) in 2023.

On April 17, 2024, UK Deputy Foreign Minister Andrew Mitchell announced at the World Bank and IMF Spring Meetings in Washington DC that the UK would provide GBP100 million (US$119 million) to the Bank’s IBRD lending arm as a hybrid capital contribution.

The funding will unlock GBP1 billion (US$1.2 billion) of additional World Bank support over the next 10 years to help countries tackle pressing development challenges.

The funding will take the form of debt. Equity is part of the UK’s commitment in its White Paper on International Development to help t:abbrMDBs stretch existing capital and implement reforms to make it easier for low-income countries to access the finance they need.

On April 16, 2024, the White House issued its 2024 US global health security strategy, which reaffirmed its position that disease threats are a risk to all populations, including Americans.

The strategy outlined how the US will work with partners around the world to best prevent, detect, and quickly respond to outbreaks around the globe. Since 2022, USAID has expanded its reach to partner countries in over 50 countries, working with a range of stakeholders to prevent and prepare for pandemics.

The strategy focuses on increasing the political commitment to addressing health security, including investments in the Pandemic Fund, and recognizing the link between global health security, global health and broader development goals.

On April 16, 2024, Canada released its Budget 2024, which included new funding to support Ukraine and bolster Canada’s international humanitarian assistance, but was criticized for a lack of transparency and did not include an increase in longer-term development assistance.

New funding announced included:

• CAD2.4 billion (US$1.7 billion) in loans to Ukraine in 2024 to support civilian services;
• CAD217 million (US$157 million) over five years starting in FY2025/26 for the EBRD to support Ukraine’s reconstruction;
• CAD76 million (US$55 million) for additional peace and security assistance for Ukraine between FY2024/25 and FY2026/27;
• CAD350 million (US$254 million) over two years beginning in FY2024/25 to international humanitarian assistance;
• CAD146 million (US$106 million) over five years starting in FY2027/28 to purchase shares in the Inter-American Development Bank to support clean economic growth and create economic opportunities for women in Latin America and the Caribbean; and
• CAD40 million (US$29 million) in FY 2023/24 for humanitarian assistance to Gaza.

Budget 2024 also recommits to leadership on international women’s rights and gender equality, support for global LGBTQI+ rights, and the modernization of international financial institutions, including the European Bank for Reconstruction and Development Agreement Act, the International Development Assistance Act, and the IMF to support responsiveness to emerging global threats.

Canadian international cooperation organizations and coalitions, including Cooperation Canada, Oxfam Canada, UNICEF Canada, and more, released statements lauding the government's commitment to CAD350 million (US$254 million) in new international humanitarian assistance. However, Cooperation Canada criticized the lack of budget transparency surrounding Canada’s IAE as well as the absence of any increase in funding for longer-term development assistance.

While previous budgets presented rough estimates of the IAE, Budget 2024 does not provide a spending forecast. Cooperation Canada noted that it is difficult to know whether Canada’s assistance budget is increasing or decreasing with no information on trends, sectoral or spending-type breakdowns, or multi-year forward spending plans. The coalition estimated the IAE budget for this year to be around CAD7.2 billion (US$5.2 billion) per year, representing a growth of about 5% from 2023's CAD6.9 billion (US$5 billion).

On April 16, 2024, UK Deputy Foreign Minister Andrew Mitchell announced an additional GBP100 million (US$119 million) in humanitarian assistance to Ethiopia.

The funding is slated to be used to support Ethiopia’s access to primary healthcare services, support communities in becoming more climate resilient, and provide help for people displaced due to drought and extreme weather.

The pledge was made at the UK co-hosted Ethiopia pledging conference with OCHA. Ethiopia is facing one of the world’s largest humanitarian crises, with over 21 million requiring assistance, 15 million people facing food insecurity, and 4 million people internally displaced.