Finland Times

Finland agreed to contribute EUR 256 million to the poverty eradication fund as the International Development Association’s (IDA) replenishment negotiations concluded in Moscow on 17 December.

 

In the replenishment negotiations, the agreement was reached on the IDA's operating policy and replenishment of funding to USD 52 billion for the period 2014-2017, said a Foreign Affairs Ministry’s press release issued on Friday.

 

The funding is provided by a total of 46 states with the United Kingdom, the United States and Japan remaining the biggest donors. 

 

IDA, part of the World Bank Group, offers soft loan funding and donates aid to the poorest developing countries.

 

The purpose of the operations is to end extreme poverty and promote more balanced distribution of well-being.

 

The IDA funding is in great demand, and its operations have significant development impact.

 

It was agreed in the negotiations that the replenishment will be used to support, for example, private sector mobilisation, inclusive economic growth and gender equality in recipient countries, adaptation of the poorest developing countries to climate change, and development of fragile and conflict-affected states.  

 

In Moscow, five countries announced that they will use the CPL instrument in order to increase their IDA funding.

 

The goals and focus areas of the replenishment round are in line with the priorities set in the Finnish Development Policy Programme, according to the release.

  

Finland underscored enhancement of aid effectiveness and the importance of inclusive economic growth for eradication of extreme poverty, highlighting, for example, tax policy as a key factor in strengthening the resource base of the public sector in developing countries.