The World Bank has significantly increased its lending capacity by 50%, making a record $150 billion available over the next decade for developing countries. This move, driven by balance sheet optimization, prioritizes green projects and offers substantial benefits to India, the bank’s largest client. The increased funding will support India’s climate resilience efforts, rural development, and projects across energy, healthcare, and digital education.
India has been re-elected as the president of the International Solar Alliance (ISA), with France continuing as co-president. The alliance, which boasts 120 member countries, is dedicated to accelerating the deployment of solar energy, particularly in developing nations. World Bank energy specialist Ashish Khanna has been chosen as the next Director General of the ISA, taking over from Ajay Mathur in March 2025.
The OPEC Fund for International Development (OPEC Fund) has announced significant new financing commitments totaling nearly half a billion US dollars at the 2024 World Bank-IMF Annual Meetings. These commitments, encompassing loans to Benin, Bhutan, Côte d’Ivoire, Jordan, Oman, and Uzbekistan, reflect the OPEC Fund’s dedication to advancing global development goals. The organization also signed a Co-Financing Framework Agreement with the World Bank Group, strengthening collaboration and enhancing development impact in Latin America and the Caribbean.
Saudi Arabia, under the leadership of Finance Minister Mohammed Al-Jadaan, has called for increased global collaboration to foster sustainable economic growth during the IMF and World Bank Annual Meetings. This call comes as Saudi Arabia takes the helm of the International Monetary and Financial Committee (IMFC), signifying its commitment to global economic stability and development.
A new Oxfam report reveals that nearly 40% of the World Bank’s climate financing over the past seven years cannot be traced, raising concerns about transparency and effectiveness. The report highlights a significant gap between the Bank’s stated climate financing commitments and actual spending, jeopardizing its efforts to combat climate change.
The World Bank’s Chief Economist for South Asia, Franziska Ohnsorge, highlights India’s potential to capitalize on global supply chain reshaping. However, she emphasizes the need for tariff reductions and easing of foreign direct investment (FDI) restrictions to fully unlock this potential. India, with its robust industrial base and skilled workforce, is well-positioned to benefit from the “China Plus One” strategy, but trade and investment barriers hinder its full participation in the global supply chain transformation.
The world’s 26 poorest countries are struggling under a growing debt burden and increased vulnerability to natural disasters, according to a new World Bank report. The report reveals that these countries, home to 40% of the world’s most impoverished people, are poorer now than before the COVID-19 pandemic, while the rest of the world has recovered. The report emphasizes the crucial role of the International Development Association (IDA) in supporting these countries, particularly through grants and low-interest loans.
Finance Minister Nirmala Sitharaman will be traveling to the United States from October 16th to 28th to participate in the annual meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) in Washington D.C. The meetings are anticipated to address key global issues like poverty reduction, economic development, and sustainable development.
Russia, as the current chair of the BRICS group, is pushing for the creation of an alternative financial system to the IMF and World Bank, aiming to counterbalance Western influence. The move comes amid growing concerns about the dominance of Western financial institutions and sanctions imposed on Russia following its invasion of Ukraine. The BRICS group, which now includes Iran, Egypt, Ethiopia, and the UAE, aims to strengthen the voices of major emerging economies and create a more equitable global order.
India is gearing up for the World Bank’s new ‘Business Ready’ survey, replacing the Doing Business Ranking. The government will evaluate over 9,900 businesses and compile an enterprise report by March 2025. The survey, focusing on trade, taxation, and business environment, aims to attract foreign investments.
