International Development Association (IDA) 21st Replenishment - Proposed Strategic Directions

Jul 19, 2026

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The 21st replenishment of the International Development Association (IDA21) is presented in response to overlapping global crises that have eroded development gains in the poorest countries. Economic uncertainty, geopolitical tensions, fragility, conflict and violence, displacement, and food and nutrition insecurity are compounded by water and energy scarcity, connectivity gaps, and constrained fiscal space. The proposal sets strategic directions to help IDA scale results faster and more efficiently, expand resilience, and strengthen outcomes through knowledge, evidence, partnerships, and a renewed policy framework.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages15

Reading Time38 min

Introduction

The challenge and opportunity

The proposal

Public Disclosure Authorized Public Disclosure Authorized INTERNATIONAL DEVELOPMENT ASSOCIATION 21ST REPLENISHMENT: PROPOSED STRATEGIC DIRECTIONS I. INTRODUCTION A. The challenge and opportunity 1. The twenty first replenishment of the International Development Association (IDA21) is taking place in the face of multiple crises that have upended development progress in the poorest countries. Against a global backdrop of economic uncertainty, geopolitical tensions, and multiple crises, 1 the Sustainable Development Goals (SDGs) in IDA countries are further off their 2030 trajectory.2 The polycrisis has partially reversed decades of development progress, exacerbating poverty and inequality, disrupting supply chains, constraining trade, increasing food insecurity, and diminishing job opportunities, especially for women and youth. IDA countries have experienced a marked increase in fragility, conflict, and violence (FCV), and the population struggles to build resilience against mounting shocks, food and nutrition insecurity, pandemic and climate risks and declines in biodiversity. The number of forcibly displaced people has also risen, profoundly affecting migration patterns. These challenges unfold against a backdrop of water and energy scarcity, connectivity gaps, and limited access to essential goods and services.3 In many IDA countries, fiscal space is constrained by weak per capita growth, as evidenced by the expected 2.3 percent Gross Development Product (GDP) per capita growth in IDA countries for 2024, falling notably short of the 3.3 percent seen in other emerging markets and developing economies. Additionally, there are mounting concerns over persistent debt vulnerabilities, as IDA countries collectively allocate 7.5 percent of their GDP to debt service payments.4 The impacts of these multiple shocks hit poor populations the hardest. 2. Time is of the essence to help IDA countries get back on the pathway to eradicate poverty on a livable planet. In the face of these challenges, IDA must leverage its convening power, knowledge, resources, and partnerships, with a response that meets the expectations of the global community. Decisive action is critical, and IDA21 needs to ramp up ambition to help IDA countries face the current crises in the short-term, while continuing to focus on long-term development goals and increasing countries’ resilience to crises. Demographic shifts, the advent of new technologies, and the potential for high-return investments in resilient development present opportunities to improve prospects for millions of people in IDA countries. IDA21 will need to deliver faster and more efficiently 1 World Bank. 2024. Global Economic Prospects, January 2024 . Washington, DC: World Bank. 2 General Assembly Economic and Social Council. 2023. Progress towards the Sustainable Development Goals: towards a rescue plan for people and planet. Report of the Secretary-General. 3 World Bank Group. 2023. Ending Poverty on a Livable Planet: Report to Governors on World Bank Evolution. Development Committee. Washington, DC: World Bank Group. 4 As of September 2023, 55 percent of IDA countries under the World Bank-IMF Debt Sustainability Framework for Low-Income Countries (LIC DSF) were at a high risk of external debt distress or in debt distress, compared with 50 percent in 2019 and 57 percent in 2022. -2- on multiple fronts, simultaneously. Governors at the Annual Meetings (AMs) in Marrakesh,5 as well as the G20 leaders6 at their summit in India, called for an ambitious IDA21 . 3. An ambitious IDA21 will enable the scaling of results, building on the current IDA portfolio which is expected to deliver social safety nets to more than 150 million people, electricity access to nearly 120 million people, and improved water and sanitation services to over 75 million people. In addition, IDA operations are expected to contribute nearly eight gigawatts of generation capacity from renewable sources f

FAQs

What crises and constraints are highlighted as challenges for IDA21?

IDA21 faces economic uncertainty, geopolitical tensions, fragility conflict and violence, displacement, food and nutrition insecurity, water and energy scarcity, connectivity gaps, and limited access to essential goods and services. Fiscal space constraints and debt vulnerabilities are also emphasized.

Why is time described as critical for IDA countries?

The document stresses that urgent action is needed to put IDA countries back on the path to eradicating poverty while meeting global expectations. It calls for scaling ambition in the short term while maintaining focus on long-term development goals and resilience.

What is the intended purpose of this note for IDA21 discussions?

The note proposes strategic directions to enable agreement on IDA21’s overarching theme and focus areas. It outlines the context, new institutional directions for the IDA21 cycle, and a proposed policy framework to strengthen outcome orientation for greater development impact.

Jul 19, 2026

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