For How Long???
World Bank Rates Nigeria Among Extremely Poor Countries
— April 2, 2014
The World Bank Group has rated Nigeria among the world’s extremely poor countries with a promise to help in ending what it called ‘ext Read more ...
reme poverty’ in the nations.
Other countries that were also rated as extremely poor are India, China, Bangladesh, DR Congo, Indonesia, Pakistan, Tanzania, Ethiopia and Kenya.
Speaking on Wednesday at the Council on Foreign Relations (CFR) in Washington in advance of the World Bank/IMF Spring Meetings, World Bank President, Dr. Jim Yong Kim, stated that the global bank would deal with the extreme poverty in Nigeria and its counterparts in the coming years.
According to him: ” The fact is that two-thirds of the world’s extreme poor are concentrated in just five countries: India, China, Nigeria, Bangladesh, and the Democratic Republic of Congo. If you add another five countries, Indonesia, Pakistan, Tanzania, Ethiopia, and Kenya, the total grows to 80 percent of the extreme poor.”
Dr. Kim added that the World Bank Group would focus on Nigeria and other nine countries, stressing that this would not make other countries in the world to be ignored.
“We will have a strategy that ensures that no country is left behind as we move toward the target of ending extreme poverty by 2030″ he said.
The World Bank President also announced a series of measures aimed at strengthening the World Bank Group to better meet the evolving needs of clients, including a $100 billion increase in the lending capacity of the Bank’s lending arm for middle-income countries over the next decade.
According to Dr. Kim, this new innovations in financial management, and a boost in the institution’s ability to provide private sector support follows the record $52 billion replenishment of IDA, the World Bank’s fund for the poorest, in December 2013.
Kim also outlined how the Bank is positioning itself to better achieve its goals of ending extreme poverty by 2030 and boosting shared prosperity for the lowest 40 percent in developing countries.
His words: “We now have the capacity to nearly double our annual lending to middle-income countries from $15 billion to $26 to $28 billion a year. This means that the World Bank’s lending capacity will increase by $100 billion to roughly $300 billion over the next ten years.
“This is in addition to the largest IDA replenishment in history, with $52 billion in grants and concessional loans to support the poorest countries.”
In addition to the previously announced $400 million in cost savings over the next three years that can be reinvested, Kim described a series of measures at the International Bank for Reconstruction and Development (IBRD)—which provides financing, risk management products, and other financial services to middle-income countries—that have the potential to transform IBRD by substantially increasing its ability to serve its clients.
Kim also described how separate arms of the World Bank Group are working even more closely together to achieve greater efficiencies.
According to him, the Bank group’s political risk insurance arm, the Multilateral Investment Guarantee Agency (MIGA) is entering into an innovative MIGA/IBRD exposure exchange agreement to improve the diversification of each organization’s portfolios, thereby freeing up capacity to support additional business.
The first exchange will be of an IBRD exposure to Brazil for a MIGA exposure to Panama, under a MIGA contract for non-honoring of sovereign financial obligations. Both Panama and Brazil will see benefits, as IBRD and MIGA will have more headroom to do additional business in each country.
Kim also noted that MIGA was planning to increase its new guarantee extension by nearly 50 per cent over the next four years.
Kim described how IFC is looking to enhance its support in achieving the global lender’s twin goals, with an expectation that it will close to double its financing over the next decade.
“IFC, the largest provider of multilateral financing for the private sector in developing countries, expects it will nearly double its portfolio over the next decade to $90 billion. In 10 years, we believe its annual new commitments will increase to $26 billion,” Kim said.