111th Meeting of the Development Committee - April 24, 2025 - Statement by Rt Hon. Baroness Chapman and Rt Hon. Rachel Reeves MP

Jul 19, 2026

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Statement delivered at the 111th Meeting of the Development Committee in Washington, DC on April 24, 2025, addressing acute global challenges facing developing countries in securing development financing. It reviews trends in poverty reduction, the impacts since 2015 of Covid, conflicts and climate crisis, and the resulting risks to the poorest and most vulnerable. It highlights UK approaches to modernising aid spending and urges strengthened IMF and World Bank cooperation, including IMF surcharge and PRGT reforms, IDA21 priorities, and potential capital considerations for the IBRD.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages4

Reading Time10 min

Key context and global challenges

Poverty, climate and instability pressures

UK policy direction and multilateral cooperation

Aid budget value for money and modernization

Role of IMF reforms and PRGT support

World Bank IDA21 priorities and IBRD resources

Strategic focus for the Bank and Fund

Jobs and prosperity as a core mission

Fragility, gender, and climate integration

Public Disclosure Authorized Public Disclosure Authorized DEVELOPMENT COMMITTEE (Joint Ministerial Committee of the Boards of Governors ofthe Bank and the Fund on the Transfer of Real Resources to Developing Countries) ONE HUNDRED AND ELEVENTH MEETING WASHINGTON, DC – APRIL 24, 2025 DC/S/2025-0008 April 24, 2025 Statement by Rt Hon. Baroness Chapman Minister for Development and Rt Hon. Rachel Reeves MP Chancellor of the Exchequer United Kingdom of Great Britain and Northern Ireland Statement by Rt Hon. Baroness Chapman Minister for Development and Rt Hon. Rachel Reeves MP Chancellor of the Exchequer United Kingdom of Great Britain and Northern Ireland 111th Meeting of the Development Committee April 24, 2025 Washington, DC We meet in Washington at a time of acute challenge for the global system and, in particular, for developing countries who are struggling to secure financing for their development priorities. Between 1990 and 2024, the proportion of people living in poverty fell from 38% to 8.5% . At the sametime, the World Bank was at the forefront of efforts to meet the challenge of climate change. However, since 2015, Covid and shocks including the invasion of Ukraine, global conflicts, and the growing climate crisis have slowed or even reversed development gains in places. Economic stress, environmental and demographic challenges further complicate the global outlook. Tragically, the world in 2025 is less secure, safe and prosperous for many compared to a decade ago. In 2030, 622 million people are still forecast to be in extreme poverty. Without further collective action, the prospects for the poorest and most vulnerable are at risk. In the face of these challenges, governments like the UK are having to take tough decisions with limited spending options. We are modernising how we spend our aid budget, delivering value for money for the people around the world our development supports, and the UK public. The IMF and the World Bank, created to foster international economic cooperation and support all their members, have made great strides in reducing poverty over 80 years. They have been an essential underpinning to much of the global development seen since 1947, evolving with the times in the face of change and new challenges. Their role is even more crucial now. They cannot solve the problems we face alone but are vital instruments of multilateral cooperation and delivery. Over the years, these institutions have provided essential financial support, expert policy advice, and technical assistance to countries facing economic difficulties and to those seeking sustainable growth to support their populations to achieve better futures. As global challenges intensify their role has become more critical. In this context, the UK welcomes the recent reforms to IMF surcharges policy and the Poverty Reduction and Growth Trust (PRGT) . Members must fulfil the necessary steps to facilitate an income transfer from the General Resource Account to the PRGT in the planned timeframe. Continuing to strengthen the IMF’s capacity development offer to its members is crucial and we encourage the IMF to consider ways to utilise its internal resources to bolster its capacity development offer and ensure its sustainability. We welcome also the World Bank’s IDA21 package, which sets priorities out important priorities for IDA – including on growth and jobs, conflict prevention, gender, climate and nature – while providing a simpler and more streamlined process for recipient countries. Alongside this, we hope that shareholders and management continue to explore a capital increase for the IBRD, subject to ongoing reforms, providing the IBRD with the resources it needs to meet today’s global challenges. As we gather in Washington for the Spring Meetings, the UK hopes that all the Bank’s partners will continue to support its vital role, building on the reforms delivered through the Ev

FAQs

What main challenges does the statement highlight for developing countries in 2025?

It describes acute global pressures that slow or reverse development gains, including Covid impacts, shocks from conflicts such as Ukraine, and the worsening climate crisis. It also notes economic stress, environmental and demographic challenges that complicate prospects for poorer populations.

What does the statement say about IMF reforms and PRGT steps?

It welcomes recent reforms to IMF surcharges policy and the Poverty Reduction and Growth Trust (PRGT). It calls on members to complete necessary steps to facilitate income transfer from the General Resource Account to the PRGT within the planned timeframe, and encourages strengthening the IMF’s capacity development offer.

Which World Bank initiatives are referenced and what priorities do they cover?

The statement welcomes the World Bank’s IDA21 package. It emphasizes priorities for IDA including growth and jobs, conflict prevention, gender, climate and nature, while also describing a simpler and more streamlined process for recipient countries.

How does the statement describe the Bank’s mission focus moving forward?

It emphasizes delivering impact where it matters most, with jobs as the path to prosperity. It further stresses integrating efforts on fragility, conflict and violence, advancing gender equality, and accelerating climate action, noting their interconnections through investments like renewable energy.

Jul 19, 2026

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