Africa receives largest share of over $52b World Bank funding to developing countries
Africa is the largest recipient of the World Bank’s assistance to developing countries in fiscal year 2012.
The Bank says according to preliminary and unaudited numbers as of June 29, IDA commitments in FY12 were $14.7 billion, down from $16.3 billion in FY11.
“The largest share of resources was committed to Africa, which received around 50 percent of total IDA lending in FY12, followed by South Asia at around 36 percent of total,” it says.
The World Bank Group says it has committed over $52 billion in fighting poverty and promoting economic growth in developing countries in fiscal year 2012.
According to the Bretton Woods Institution the $52.6 billion went into loans, grants, equity investments and guarantees to help promote economic growth, overcome poverty, and promote economic enterprise in developing countries during fiscal year 2012. The year ended June 30, 2012.
The Bank which recently lowered its growth forecast for 2012 to 5.4 percent for developing countries, down from its June estimates of 6.2 percent, noted that developing country budgets and central banks are not as well placed as they were in 2008/09 to address slowing economies.
“Their ability to respond may be constrained if international finance dries up and global conditions deteriorate sharply,” it says.
It says IBRD commitments totaled $20.6 billion significantly higher than the historical average ($13.5 billion in fiscal 2005 08), but less than the record $44.2 billion in fiscal 2010, when the crisis peaked. Europe and Central Asia and Latin America and the Caribbean received the largest shares of IBRD lending, each receiving $6.2 billion in new commitments, according to the Bank.
It indicates that new Bank Group commitments to agriculture and related sectors in FY12 are expected to reach $9.1 billion.
“This exceeds projected lending in the Bank’s Agriculture Action Plan, which foresaw an increase in assistance from an average of $4.1 billion annually in FY06-08 to $6.2-$8.3 billion annually in FY10-12. Over the life of the Action Plan, assistance averaged $7 billion. IBRD/IDA assistance in FY12 is the highest in 20 years (in nominal terms),” it adds.
By Emmanuel K. Dogbevi