US Commits Record $4 Billion to Eradicate Poverty Worldwide
President Biden's historic $4 billion pledge to the World Bank aims to support the poorest countries, but uncertainty surrounds whether President-elect Trump will honor the commitment.
US President Joe Biden has announced a groundbreaking pledge of $4 billion to the World Bank's International Development Association (IDA) fund, aimed at alleviating poverty in the world's most impoverished nations. This commitment, made during the Group of 20 summit in Rio de Janeiro, exceeds the US's previous contribution of $3.5 billion in December 2021.
The IDA fund provides essential grants and low-interest loans to developing countries, assisting them in addressing critical challenges such as overwhelming debt, climate-related disasters, and ongoing conflicts. World Bank President Ajay Banga is advocating for an ambitious replenishment of over $93 billion, with Biden's pledge representing around 14.3% of the US's prior commitment.
However, concerns loom over whether President-elect Donald Trump will uphold this promise, given his previous stance on reducing foreign aid. Trump's transition team has not provided any clarity on the matter, and the funding approval by US Congress may not be finalized until after Trump assumes office in January.
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