US cuts funding by SDR 400m, loses dominant role in IDA
The Bush administration has made dramatic cuts in its funding of the World Bank’s International Development Association (IDA), which provides grants and soft loans to the poorest countries.
US funding of IDA drops by SDR 400 million over the next three years. The United States, now only a marginally larger donor than the United Kingdom and Japan, no longer dominates IDA. Meanwhile, Sweden has become the 6th largest donor in the World Bank’s soft lending arm.
Weakened US financial muscle in IDA is likely to reinforce the criticism of the American monopoly of the World Bank Presidency.