The World Bank announced on Thursday that it will aid some of the poorest nations globally. This funding, raised through donor countries, enables the Bank’s concessional lending arm, the International Development Association (IDA), to generate $100 billion in total spending capacity.

The $23.7 billion pledged by donors represents a slight increase from the $23.5 billion raised during the last IDA replenishment three years ago. By leveraging these funds on financial markets, the Bank can amplify its impact, up from $93 billion during the previous round.

A World Bank statement hailed the success of the fundraising campaign, calling it a "vote of confidence and support from donors and clients." Ajay Banga, the Bank’s President, added that the funds would benefit the 78 countries most in need, supporting investments in health, education, infrastructure, and climate resilience while also stabilizing economies and creating jobs.

Who are the donors, and where will the money go?

The IDA, which lends and grants concessionary terms to developing countries, has emerged as the largest source of below-market climate financing. Over the past decade, two-thirds of its financing has been to African countries.

The key contributors to the last replenishment include the United States, Japan, and European countries like the United Kingdom, Germany, and France. This year, the U.S. pledged a record $4 billion, and other countries, such as Norway and Spain, significantly increased their pledges.

Thirty-five countries that used to be recipients of IDA, including China, Turkey, and South Korea, are now considered donors. The IDA program, thus, proves to have worked successfully for the nations, fostering their economic growth.

The announcement was made following two days of discussion in Seoul, South Korea-a country which had received support from IDA sometime back. 

This latest round, known as IDA21, is expected to cause a transformative impact in the world's poorest countries. The IDA remains strong and continues to contribute powerfully to lifting millions from poverty and creating opportunities for sustainable growth by addressing all the critical needs of the current world, such as education, climate change, and infrastructural development.