0

20

40

10

30

60

50

2012–20142009–2011 2015–2017

Concessional partner loans (net of grant element)

Donor contributions Donor compensation

for MDRI debt forgiveness

IBRD and IFC transfers

IDA internal resources

Multilateral Debt Relief Initiative (MDRI)

IDA Replenishments

Rural Development

Rule of Law

Public Sector Governance

Human Development

Financial and Private Sector Development

Social Development, Gender and Inclusion

Social Protection and Risk Management

Trade and Integration

Urban Development

Economic Management

Environment and Natural Resource Management

0

50

100

150

200

250

20132012 2014

300

16%

13%

13%

20%

9%

11%

2%

1%

3%

4%

10%

6.3 14.6 14.9

26.4

6.3

25.126.1

3.5

4.53.2

5.33.0

3.9

23.0

259.1 259.6

24.5 25.5

248.5

Switzerland and the International Development Association (IDA, World Bank Group) October 2015 1

SECO-SDC FACTSHEETMULTILATERAL ORGANISATIONSOctober 2015

SWITZERLAND AND THE INTERNA-TIONAL DEVELOPMENT ASSOCIATION (IDA, WORLD BANK GROUP)

FACTS AND FIGURES

MandateThe World Bank Group’s (WBG) mission is anchored by two goals: to end extreme poverty globally within a generation and to promote “shared prosperity”, a sustainable increase in the wellbeing of society’s poorest segments. The WBG is composed of the In-ternational Bank for Reconstruction and Develop-ment (IBRD), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), the International Centre for Settlement of In-vestment Disputes (ICSID) and the International Devel-opment Association (IDA). IDA is the part of the World Bank Group that helps the world’s poorest countries.

Type of organisationInternational financial institution / multilateral devel-opment bank

Institution• Head of organisation (WBG): Jim Yong Kim

(US/South Korea)• Headquarters: Washington D.C., USA• Number of country offices (WBG): 132 (78

countries eligible for IDA assistance)• Number of staff (WBG, as of June 2015):

12,335 • Established in: 1960 (IDA)• Board: In the World Bank Group, the Board of

Governors is the highest decision-making body. A 25-member Board of Directors is the standing de-cision-making body on the operational level. Since 1992 Switzerland has been head of a constituency group of 8 member states, which is represented by an Executive Director.

Switzerland• Financial contribution

• IDA Replenishment 17 (2014–2017): CHF 752 million (Swiss share of the replenish-ment: 2.3%, 9th largest contributor)

• Number of Swiss staff (WBG, 2015): 49• Mandates to Swiss firms (2014): CHF 48.5 million

Website: www.worldbank.org/ida

IDA total revenues (in CHF billion)

IDA/IBRD expenditure by focus area (fiscal year 2014: July 1, 2013 to June 30, 2014)

Switzerland’s contributions to IDA (in CHF million)

Switzerland and the International Development Association (IDA, World Bank Group) October 2015 2

both by financing projects that directly address gen-der issues and by incorporating gender equality in other operations. In 2014, 97% of IDA-funded pro-jects had gender integrated in their analysis, design, or monitoring.

For example, IDA-financed HIV/AIDS programme operations in Africa are focused on addressing gen-der dynamics in the response to the pandemic, with operations in several countries. In Rwanda, IDA has financed rural access to AIDS care resulting in some 5,000 poor patients, mainly women, benefitting from antiretroviral therapy. In Haiti, an IDA-financed project is equipping women with the right skills—both technical and financial—to increase crop yields, access markets, and increase their incomes.

Achieving climate-resilient developmentClimate change presents an urgent threat to the well-being of people in developing countries. These coun-tries are particularly dependent on agriculture and other climate-sensitive natural resources for income and prosperity, and they lack sufficient financial and technical capacities to manage increased climate risk.Increasing energy efficiency and the use of renew-able sources of energy are the cornerstones of IDA’s mitigation actions in its client countries. With about USD 5 billion in climate-related financing in fiscal year 2014, IDA continued to demonstrate a steady commitment to climate action projects. These pro-jects have improved access to energy supplies as well as their reliability. They have also facilitated the shift toward lower-carbon energy systems.

In Nigeria, for example, the Lagos Urban Transport partnership between the Government and IDA led to a new bus rapid transit (BRT) line in 2007. Build-ing on this, a new project approved in 2010 blends resources from IDA and the Global Environment Fa-cility to support greenhouse gas emission reductions. It aims to reduce CO2 emissions from vehicles along BRT corridors by more than 1 million tons.

Supporting fragile and conflict-affected countriesMore than 1.5 billion people live in fragile and con-flict-affected countries. Conflict begets poverty by undermining economic development. It removes personal security and, by weakening governance, al-lows violent crime to flourish and threatens national and regional stability.

IDA provides the financing needed to rebuild state institutions and develop the infrastructure that peo-ple need to resume peaceful and constructive lives. Sierra Leone emerged from an 11-year civil war in 2002 with most of its basic infrastructure in ruins. An IDA-financed safety net programme facilitated access to healthcare for 700,000 people, provided 360,000 children with access to educational facili-ties, and benefited 30,000 people through a cash-for-work programme.

IDA

MandateThe International Development Association (IDA) is the institution through which the World Bank Group helps the world’s poorest countries. It complements the World Bank Group’s original lending arm – the International Bank for Reconstruction and Develop-ment (IBRD). Established in 1960, IDA aims to reduce poverty by providing interest-free credits, as well as grants for programmes that boost economic growth, reduce inequalities, and improve people’s living conditions.

IDA is a multi-issue institution, supporting a range of development activities, such as primary education, basic health services, clean water and sanitation, en-vironmental safeguards, agriculture, business climate improvements, infrastructure, and institutional re-forms.

In addition to providing concessional loans and grants, IDA advises governments on ways to broaden the base of economic growth and protect the poor from economic shocks. It also provides significant levels of debt relief through the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI). IDA’s operational work is complemented by analytical studies that support the design of policies to reduce poverty.

Since its inception, IDA has supported activities in 112 countries. Annual commitments have averaged about USD 18 billion over the last three years, about half of which have gone to Africa. In fiscal year 2014, IDA commitments reached USD 22.2 billion spread over 242 new operations. Twelve percent of the to-tal was committed on grant terms. India (USD 3.1 billion) and Pakistan (2.1 billion) received the largest share of committed resources.

Medium-term objectivesThe current funding cycle, known as IDA17, places a special emphasis on four thematic areas: gender equality, climate change, fragile and conflict-affect-ed countries, and inclusive growth.

ResultsFor more than a decade, IDA has been measuring its role in helping countries grow and reduce pov-erty, and informing donors about the effectiveness of their contributions. IDA places a premium on de-velopment impact and is regarded as a transparent, cost-effective platform for achieving development results.

Promoting gender equalityGiving equal rights and opportunities to women and girls is amongst the most effective ways to combat poverty, hunger and disease, as well as to stimulate sustainable development. IDA pursues this objective

Switzerland and the International Development Association (IDA, World Bank Group) October 2015 3

Promoting inclusive growthIn the context of strong growth performance and ris-ing inequality in many IDA countries, inclusive growth has emerged as an important priority. Increased economic opportunity for marginalized groups—in-cluding women and youth—can make growth more robust and sustainable. IDA devotes special atten-tion to three important channels: (1) job creation; (2) financial inclusion; and (3) natural resource wealth.

In Ethiopia, for example, an IDA project has been pro-moting small an medium enterprises that are owned or partly owned by women. This happens through access to microfinance, developing entrepreneurial skills, technology and cluster development, training in project management, advocacy and outreach.

SWITZERLAND

Switzerland has been a member of IDA since 1992. Thanks to the Bank’s financial strength and expertise in addressing poverty and other global issues, the Swiss contribution to IDA is an important complement of Swiss bilateral aid. As a donor and through active participation, Switzerland has continually played an important role in shaping priorities, the results-meas-urement system and the reporting schedule of IDA.

Switzerland’s medium-term objectivesFor 2014–2017 (the period that corresponds to the 17th IDA replenishment cycle), Switzerland is pursu-ing the following goals:

• Supporting IDA’s efforts to implement transparent and accountable governance and strengthened public financial management in partner countries, as well as strategies to increase job growth

• Deepening gender equality in IDA operations and at the WBG corporate level

• Contributing to low-carbon and climate-resilient development in IDA countries by focusing on en-

ergy efficiency, sustainable management of natu-ral resources, and disaster risk reduction, as well as contributing to an effective climate financing architecture

• Supporting fragile and conflict affected states by fostering partnerships (in particular with the UN), promoting conflict sensitive analysis and ap-proaches, and developing strategies that address the drivers of fragility and conflict

• Reinforcing the long-term financial sustainability of IDA in the context of the new WBG strategy

Results of Swiss cooperation with IDAThanks to its active contribution to the Executive Board of Directors, Switzerland has been able to in-fluence discussions and decisions on various World Bank group challenges:

Climate changeThanks to Switzerland’s coherent and substantial posi-tions and coordinated action with other donors, most of the current World Bank country strategies define cli-mate change as a priority issue. Moreover, the World Bank Group has increased its investments in the area of climate change resilience.

Switzerland has been very supportive of IDA continuing to play a crucial role in helping leverage additional devel-opment funds for climate change, and attaches particu-lar importance to strengthening climate resilience at the country level. In 2014, Switzerland reinforced its support to the Global Facility for Disaster Reduction and Recov-ery (GFDRR) with a four-year commitment of CHF 18 million to the World Bank managed fund. The GFDRR is a global partnership to help high-risk, low-capacity de-veloping countries better understand and reduce their vulnerabilities to natural hazards and adapt to climate change. Switzerland is a member of the GFDRR’s key governing and decision-making body, and is co-funding a World Bank/GFDRR position in Geneva, which is of crucial importance for the visibility of the climate change and disaster reduction agenda in the international policy arena. As of 2015, 22 of GFDRR’s 24 focus countries are IDA countries.

Fragile and conflict-affected situationsSwitzerland contributed substantially to the World Development Report 2011 on Conflict, Security and Development, which has become the main policy framework for development actors’ engagement in fragile states. Switzerland promotes the implemen-tation of the report’s recommendations through in-terventions at the World Bank Executive Board and through its role as an IDA donor. As a result, the con-flict sensitivity of country strategies has been signifi-cantly increased.

Switzerland has also launched targeted innovative actions such as the UN-World Bank Group Partner-ship Trust Fund. This entity contributes to greater col-laboration between the UN and World Bank at both the regional and country level in fragile and conflict-Solar panel used for lighting village homes. Sri Lanka. Photo: © Dominic Sansoni / World Bank

Switzerland and the International Development Association (IDA, World Bank Group) October 2015 4

affected situations. It has launched innovative coun-try partnerships to assist political transitions, such as paying public sector salaries in the Central African Republic during the summer of 2014 and supporting institutional capacity development in Somalia. In ad-dition, the trust fund enabled UN and World Bank teams to work closely together in planning and im-plementing the response to the Ebola epidemic.

GenderIn collaboration with other donors, Switzerland has helped to reinforce the World Bank Group’s commit-ment to gender equality to such a degree that gender equality indicators are now binding for all IDA pro-grammes and the financial resources dedicated to gen-der issues continue to grow. In addition to supporting the World Development Report on Gender Equality in 2012, Switzerland has more recently engaged with the World Bank on its revised gender strategy, as well as played an active role in the Executive Board, where its positions on World Bank governance issues, coun-try partnership strategies, and projects are carefully formulated through a gender-sensitive lens.

Switzerland also contributes to and supports the Umbrella Facility for Gender Equality, a unique, val-ue-adding funding mechanism to complement the World Bank’s gender mainstreaming work. The Fa-cility strives to generate better informed policy mak-ing at country level, enhance global knowledge by applying existing evidence to policy making and op-erations, and increase demand for gender equality in-terventions through heightened awareness. In 2014, the UFGE supported 70 activities, from impact evalua-tions, practical research, and pilot projects to technical assistance and client capacity building interventions.

EffectivenessSwitzerland is continuing its dialogue with the World Bank on improving effectiveness through interven-tions on the Executive Board and through IDA re-plenishment negotiations. IDA17 adopted “maximiz-ing development impact” as an overarching theme

to enhance IDA‘s ability to respond to the evolving development agenda of IDA countries in an efficient and effective way. Switzerland is now engaged in the analysis and refinement of IDA’s results measure-ment system, putting a stronger emphasis on quali-tative and sustainability dimensions.

Financial sustainability Against the backdrop of a challenging and uncertain external environment and tightened fiscal constraints for several partner countries, it is important to ensure IDA’s long-term financial sustainability. Moreover, fundamental shifts in the global development land-scape require the World Bank and its member coun-tries to re-examine IDA’s role and business model to match the objectives of the 2030 Agenda for Sustain-able Development. Switzerland is actively engaged in these discussions and committed to developing a funding system that is less dependent on donor con-tributions and thus more self-sustainable. Options to increase IDA’s financial sustainability are currently being explored and will likely be implemented in the next IDA cycle thanks to close collaboration between Switzerland and other donors.

IDA CHALLENGES

There is still an unfinished agenda with regard to the challenges highlighted above, from building resilience to climate change and working in fragile and conflict affected countries to improving gender equality and helping countries prepare for and respond to future crises. Implementing this agenda in today’s con-strained fiscal environment represents a challenge for all actors in the development sector.

In order to achieve the World Bank Group’s twin goals of ending extreme poverty and boosting shared pros-perity, IDA must evolve and adapt to the ever-chang-ing international development landscape. There is a strong need for new funding mechanisms to enhance IDA’s financial sustainability, including new financial instruments and leveraging private sector funds. Switzerland is strongly engaged in these debates.

In addition, coordination with other multilateral de-velopment banks, as well as with UN agencies, re-mains a relevant challenge. Switzerland aims to im-prove the effectiveness of the multilateral system and is thus constantly addressing this issue through its influence both in the World Bank Group and in its UN partner organisations.

ContactSECO Multilateral Cooperation:info.wemf.cooperation@seco.admin.ch

SDC Global Institution Division:global.institutions@eda.admin.ch

Luxor, Egypt. Employees at Rich Factory carefully sew men’s underwear. Rich is a small business where the majority of the employees are young women from the neighbourhood. Photo: © Dominic Chavez / World Bank