World Bank Creates Trust Fund For World's Poorest Nations
Friday, January 16, 2004
The World Bank announced yesterday it has created a $25 million trust fund to help the world's poorest nations in supporting efforts to promote good governance and improve delivery of social services.
The fund, to be financed with money from last year's World Bank surplus, will be used to "jump-start" the changes necessary to get the targeted countries "back on track to sustainable poverty reduction," World Bank President James Wolfensohn said.
"Neglecting these countries only perpetuates and aggravates poverty, possibly leading to instability and 'state failure.' It also creates potential for negative regional and global spillovers, since epidemic diseases, conflict and organized crime easily move across national borders," he said.
The trust fund will focus on capacity-building to support governance reform by encouraging dialogue among national stakeholders and international donors, as well as by providing leadership training, information dissemination assistance and technical help to implement government reforms. The fund will also aid in strengthening social service delivery, particularly to help fight HIV/AIDS.
The International Development Association will administer the fund, which will target countries ineligible to receive IDA funding due to being in arrears with the bank (World Bank release, Jan. 15).