International Development Association (IDA)18 – Core Contribution 2017-2020
IDA is the part of the World Bank Group (WBG) that helps the world’s poorest countries end extreme poverty and build shared prosperity in a sustainable manner. It aims to reduce poverty by providing loans and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions. Switzerland has contributed to IDA since 1967 and once again played an active role in the replenishment negotiations for the period 2017-2020, which defined five priority areas: climate change; fragility, conflict, and violence (FCV); jobs and economic transformation; governance and institutions; and gender and development. This is Switzerland’s largest financial contribution to a multilateral organization, reflecting the importance and global relevance of IDA and the WBG in helping Switzerland achieve its development goals.
Sector not specified
- Achievements at the Swiss level have been satisfactory. Switzerland actively engaged in the IDA17 Midterm Review and in the debate about IDA’s financial sustainability during the IDA18 negotiations (i.e. IDA+).
- Swiss engagement on jobs has seen mixed results. Collaboration on the Better Work and the Public Expenditure and Financial Accountability Initiatives has been positive, while the Let’s Work Initiative and the Extractives Global Programmatic Support have been less than satisfactory.
- Switzerland pushed for more cooperation with UN-Women and contributed both substantively and financially to the Umbrella Facility for Gender Equality, which received a very favorable midterm review in 2015.
- Collaboration via the Global Facility for Disaster Risk Reduction and Energy Sector Management Assistance Program has been positive. Switzerland also provided substantive inputs on the WBG’s Climate Change Action Plan.
- Switzerland has been a champion of UN-WB collaboration in fragile contexts through the UN-WB Fragility Trust Fund and has regularly applied a conflict-sensitive lens to Board interventions thanks to poignant feedback from the field.
- Inclusive Growth: IDA/WBG achieve progress on the twin goals of ending extreme poverty (reducing the share of the global population living in extreme poverty to 3 percent by 2030), and promoting shared prosperity (increasing the income of the bottom 40 percent of the population in each country) in a sustainable manner.
- Financial Sustainability: IDA/WBG financial sustainability is ensured, including maintaining net expenses below net revenue and keeping general administrative costs (as a share of lending portfolio) as low as possible.
- Organizational and Operational Effectiveness: IDA/WBG improves its effectiveness and efficiency at the organizational and operational levels, and begins successful implementation of the new Environmental and Social Framework (Safeguards policy).
- Climate Change: Climate change and disaster risk management are mainstreamed into Systematic Country Diagnostics (SCDs) and Country Partnership Frameworks (CPFs); IDA resources used for climate change are being monitored and reported on a regular basis.
- Fragility, Conflict, and Violence: IDA’s knowledge on FCV is strengthened and learning from operational experience is increased; integrated WBG strategies address root causes of FCV and build institutional resilience; field staffing and training, and operational effectiveness in fragile and conflict-affected states (FCS) is improved; Joint analysis, joint planning and partnerships based on comparative advantage, especially with the UN are promoted.
- Jobs and Economic Transformation: More and better jobs that ensure inclusion of youth and women are created; collaboration between IDA and IFC/MIGA is improved.
- Governance and Institutions: Domestic resource mobilization (DRM) in partner countries is strengthened; public expenditure, financial management and procurement is improved; illicit financial flows are mitigated.
- Gender and Development: sharpened focus on closing gaps between women and men, girls and boys in country strategies and operations, and strengthened data and evidence base to enhance impact towards gender equality.
- World Bank - International Development Association
- International Development Association (IDA)
Sector according to the OECD Developement Assistance Commitiee categorisation Unallocated / Unspecified
Sub-Sector according to the OECD Developement Assistance Commitiee categorisationSectors not specified
Cross-cutting topics Conflict reduction
The project also supports partner organisation improvements
Aid Type Core contribution
|Area of responsibility||
The WBG, which is owned by 189 member countries, is a global thought leader on development principles and standards, as well as a leading producer of globally relevant knowledge products. With regard to development finance, it is the most influential multilateral organization. IDA’s comparative advantage is rooted in a strong and effective business model that leverages resources and delivers value for money. The IDA18 replenishment negotiations assembled a record USD 75 billion financing package, adjusting IDA’s financing model to leverage its balance sheet on the international capital markets (so-called IDA+). This will allow for a substantial increase in lending volume to support the 2030 Agenda in the poorest countries, in particular in fragile countries.
|Switzerland's and the organisation's strategic priorities and their coherence||
The WBG (including IDA) is among the 15 priority multilateral organizations according to the Dispatch on International Cooperation 2017-2020. The five special themes of IDA18 (climate change; fragility, conflict, and violence (FCV); jobs and economic transformation; governance and institutions; and gender and development) correspond closely to those of SECO and SDC as outlined in the Dispatch 2017-2020. In addition, during the replenishment negotiations, Switzerland strongly pushed for IDA to make a focused contribution toward the implementation and results monitoring of the 2030 Agenda, intensify its efforts to improve conditions for the private sector, and to cooperate more closely with other development actors, such as the UN, especially in fragile contexts. The new IDA+ business model answers the call of the Addis Ababa Action Agenda for multilateral development banks to maximize their resources and find innovative ways to finance the 2030 Agenda.
|Results of the organisation's previous engagement||
IDA has been making solid progress toward fulfilling IDA17 policy commitments. Record lending during the first year of IDA17 reflects the strong continued demand from the world’s poorest countries for IDA’s country-based, non-earmarked business model. Over 80% of IDA projects are rated satisfactory, exceeding the performance standard of 75%. With regard to the special themes of IDA17, 66 percent of all IDA operations integrated gender into analysis, design, and monitoring – an improvement over the 58 percent recorded in fiscal year 2014 (FY14). All IDA country programs and operations are now screened for disaster and climate risk, and they include appropriate measures to address such risks. IDA’s portfolio is thus shifting toward cleaner and more resilient operations with growing investments in climate-related activities. Unfortunately, self-ratings of satisfactory implementation in fragile and conflict-affected states (FCS) saw a decrease from 81 percent in FY14 to 76 percent in FY15.
|Results of Switzerland's engagement in previous phase||
|Medium-term outcome of organisation's current engagement||
For the IDA18 period, Switzerland will monitor the WBG on three broad metrics at the institutional level:
Reporting on the Bank’s progress on IDA’s Special Themes, with a particular focus on Switzerland’s direct engagement on those themes, will be tracked under Management Level 2 in the current phase (see below).
|Effect in Switzerland||
|Directorate/federal office responsible||
International Financial Institution (IFI)
|Budget||Current phase Swiss budget CHF 645’000’000 Swiss disbursement to date CHF 373’419’820 Budget of the organisation CHF 75’000’000’000|
|Switzerland's ranking in the DonorOrder||
Despite a CHF 107 million reduction compared to IDA17 (and a reduction in Swiss burden share from 2.3% to 2.14%), Switzerland retains its ranking among the top 10 donors at 9th place. The new burden share is consistent with Swiss burden shares from the IDA15 and IDA16 replenishments.
Core contribution ranking: 1. United Kingdom, 2. USA, 3. Japan, 4. Germany, 5. France, and 9. Switzerland out of 52 donors. China is now ranked 11th (previously 19th).
|Coordination with other projects and actors||
Switzerland built alliances with other donors around the special themes, which allowed for stronger messaging vis-à-vis Bank management. Switzerland also led the way with like-minded countries in ensuring a commitment from IDA Management to review IDA’s voting rights system. This is important, not only because donor contributions will be exposed to risk for the first time as a result of IDA+, but also to ensure donors’ continued legitimacy and participation in IDA’s decision-making process.
|Project phases||Phase 9 01.07.2020 - 31.12.2029 (Current phase) Phase 8 01.07.2017 - 31.12.2026 (Current phase) Phase 7 01.07.2014 - 31.12.2023 (Current phase)|