World Bank

Danish multilateral aid channelled through the World Bank helps secure financing and advice that can help achieve the Bank's goal of eradicating poverty and reducing inequality in the world.

Looking ahead to 2030, the World Bank has two overarching objectives:

End extreme poverty by ensuring that no more than 3% live on less than $1,90 dollar a day.
Creating a better future by promoting income growth for the poorest 40% of the world population.

The World Bank Group is owned by 189 member countries and has more than 12,000 staff working in over 140 countries. In fiscal year 2021 the Bank pledged commitments in developing countries for close to $100 billion dollar corresponding to approx. 1/4 of Denmark’s total GDP in 2021.

The World Bank Group consists of 5 organisations: the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID).

The Bank's main tasks are to provide loans and grants as well as technical assistance and advice to developing countries. The World Bank enables countries with low creditworthiness to borrow money at low interest rates, which can be used to foster development and growth. Loans and grants support development in a wide range of areas, including among others climate, education, health, environment protection, public administration and infrastructure.

Contributions under IBRD, IFC and MIGA have ensured that within 3 years approx. 537 million people have received basic health services, approx. 393 million people gained improved access to transport, approx. 314 million students received assistance in education, and approx. 248 million people have gained access to better sanitation. See more on the World Bank website here.

The Bank’s capacity within policy advise and technical assistance to developing countries helps to ensure that the loans and appropriations granted create as much value as possible. The size of the World Bank enables economies of scale, and its global reach and broad membership enable it to exercise leadership in both public and private investment and partnerships. The World Bank is the largest provider of climate finance for developing countries, and over the past four years, the Bank has disbursed an annual average of more than USD21 billion in climate finance.

The majority of Danish aid funds channeled through the World Bank are channeled through IDA, which provides loans and grants on special terms to the poorest countries. According to IDA's scorecard, IDA contributed in fiscal year 2021 to approx. 124 million people accessing social safety nets, approx. 96 million people receiving basic health services, approx. 51 million women and children receiving nutrition support, 10 million people gaining better access to electricity, and approx. 7 million people having access to improved water sources.

IDA operates as a fund that is replenished every three years by donations from the more prosperous countries. IDA's priorities are very much in line with Danish development policy priorities, with the 20th replenishment (2022-2025) focusing on climate, gender equality, fragile and conflict-affected states, good governance and inclusive growth. For the period 2022-2025, Denmark plans to pledge more than DKK 2,3 billion to IDA20.

Denmark exercises influence in the World Bank through participation in the Bank's Annual Meetings and Spring Meetings, and in the IDA replenishment process, where priorities for IDA's work are set. Denmark is part of the Nordic-Baltic constituency, which holds a seat in the Banks Board of Directors. The Organizational Strategy sets the framework and priorities for cooperation with the World Bank.