Survey on International Support Measures specific to the
Least Developed Countries (LDCs)
related to Multilateral Official Development Assistance (ODA)
The World Bank
Summary Results
prepared by the United Nations Department of Economic and Social Affairs (DESA)
and the Committee for Development Policy (CDP) Secretariat*
Table of Contents
A.
A. Budget Allocation to LDCs
Budget allocation to LDCs.......................... 1
B. LDC contributions to the organization’s
budget......................................................... 2
C.
Priorities in LDC-related assistance.............. 2
D.
LDC-specific modalities in ODA, Loan
and Grants.................................................. 2
E.
LDC-specific Technical Assistance
Trust Funds................................................. 2
F.
Graduated and graduating countries:
objectives and policies concerning
Cape Verde, the Maldives and Samoa.......... 3
G. Comments and suggestions.......................... 3
* This summary was prepared by the DESA/CDP Secretariat,
based on the survey response submitted by the World Bank.
The content, findings, interpretations, and conclusions as
expressed in this summary reflect the views of its authors, and
do not necessarily represent the views of the United Nations,
or the organization responding to the survey. The views
presented in this document should not be considered as the
official position of the World Bank.
March 2012
Some international organizations have specific rules or
indicators to earmark the allocation of resources among
developing countries and, more specifically, take LDC status into consideration.
Organization response
The World Bank is made up of two development institutions: the International Bank for Reconstruction
and Development (IBRD) and the International
Development Association (IDA). Each institution plays
a different but collaborative role in advancing the vision
of inclusive and sustainable globalization. The IBRD
aims to reduce poverty in middle-income and creditworthy poorer countries, while IDA focuses on the world’s
poorest countries.
The World Bank does not take LDC status into consideration in determining its budget allocation. But all
LDCs, with the exception of Equatorial Guinea and
Tuvalu, are eligible for IDA financing (see Annex Table 1).
1
The IDA is funded through replenishments that take
place every 3 years. About 70 per cent of the funding comes from donor contributions; the rest is provided through the IBRD’s and International Finance
Corporation’s income, along with borrowers’ repayments
of earlier IDA credits. Currently, 79 countries are eligible
for receiving IDA financing (for the full list of borrowing
countries, see http://go.worldbank.org/83SUQPXD20).
IDA allocations among eligible countries are based on
the Performance-Based Allocation (PBA) system, under
which country’s performance is assessed through both
the Country Policy and Institutional Assessment and
the Country Performance Rating.
The World Bank acts as trustee or administrator for
some of the large initiatives or funds, such as the Global
Fund to Fight AIDS, Tuberculosis and Malaria, The
Global Environment Facility (including LDCs Fund for
Climate Change), and the Debt Relief Trust Fund.
B. LDC contributions to the organization’s
budget
Some international organizations have special rules regarding LDC contributions to the organization’s regular
and other operational budgets.
Organization response
The World Bank does not have special rules for LDC
contributions to the organization’s budget.
C. Priorities in LDC-related assistance
Some organizations take into consideration LDC status in
their development assistance activities and extend special
assistance to these countries.
D. LDC-specific modalities in ODA, Loans
and Grants
Aid modalities refer to the way in which aid is provided by
donors to partner governments. Donors have developed
a range of new modalities to complement traditional
types of aid projects, ranging from projects to sectoral
approaches and new aid approaches, such as General
Budget Support (GBS), to balance of payment support,
with a variety of arrangements for conditionality, earmarking and accountability.
Concessional loans are provided on more generous terms
than market loans. The concessionality is achieved either
through less than market interest rates or extended grace
periods, or a combination of both conditions. Some multilateral donors may have concessional schemes or grants
that are only available to LDCs.
Organization response
In general, the World Bank does not apply aid modalities
to LDCs that are different from those granted to IDAeligible countries. The modality of the Least Developed
Countries Fund for Climate Change is grant funding;
thus, grants are provided to implementing agencies to
implement climate change projects in LDCs.
IDA doe not offer credits or grants to LDCs at other
specific conditions that are different from those reserved
to IDA-eligible countries.
E. LDC-specific Technical Assistance
Trust Funds
Some international organizations have set up or administered technical assistance trust funds whose sole beneficiaries are LDCs.
Organization response
Organization response
The World Bank does not have any special rules designated for LDCs. Based on the IDA’s eligibility criteria
explained previously, most LDCs are IDA-eligible.
See Annex Table 2 below.
2
Organization response
F. Graduated and graduating countries:
objectives and policies concerning Cape
Verde, the Maldives and Samoa
The World Bank does not offer LDC-specific measures
to graduated and graduating countries from the LDC
category. However, it is one of 7 members of the Budget
Support Group for Cape Verde, whose objective is to harmonize members’ budget support to the country, in anticipation of donors’ possible withdrawal of concessional aid.
For the Maldives and Samoa, the World Bank has stated
its willingness to participate in a consultative mechanism,
but no such mechanism has been put in place.
Cape Verde and the Maldives graduated from the list of
least developed countries in December 2007 and January
2011, respectively, and Samoa is scheduled to graduate from the list of LDCs in 1 January 2014. The General
a
Assembly resolution 59/209 on the Smooth transition
strategy for countries graduating from the list of least developed countries invites bilateral and multilateral development and trading partners to cooperate and support
a smooth transition of countries graduating from the list
of LDCs. In particular, the resolution calls for the graduating countries, in cooperation with the development and
trading partners, to prepare a transition strategy to adjust
to the phasing out of the advantages associated with
LDC status, and recommends “that the graduating country
establish, in cooperation with its bilateral and multilateral
development and trading partners, a consultative mechanism
to facilitate the preparation of the transition strategy and the
identification of the associated actions”.
a
IDA does not offer credits or grants to LDCs at conditions that are different from those accorded to other
IDA-eligible countries.
G. Comments and suggestions
As stated previously, there is no specific LDC-measure
applied to determine IDA’s support to eligible countries.
It is conceivable, however, that IDA’s allocation system
has translated into significant support to LDCs since
funds alloted to LDCs account for about 20 per cent of
all development assistance funding granted by the Bank.
Specific needs of LDCs will be raised and addressed by
the relevant governing bodies of the various Funds mentioned in paragraph A.
See General Assembly Resolution 59/209, 28 February 2005.
Annex
a
Table 1: IDA commitments to least developed countries, 2008-2010
Total IDA commitments
Commitments to LDCs
Commitments to LDCs
(Millions of dollars)
(Millions of dollars)
(Percentage in total)
2008
2009
2010
11 235
13 595
14 550
5 318
5 857
6 362
47
44
44
a Refers to the fiscal year of the World Bank, which begins on 1 July and ends on 30 June.
a
Table 2: LDC-specific Technical Assistance Trust Funds, 2008–2010
(Millions of dollars)
Amount Received
Trust Fund Name
Least Developed Countries
Fund for Climate Change
Web Page Address
www.gefweb.org/ldc
LDC Recipients
48 LDCs are eligible
Amount Distributed
2008
2009
2010
2008
36
27
35
16
2009
4
2010
12
a Refers to the fiscal year of the World Bank, which begins on 1 July and ends on 30 June.
3