WASHINGTON, April 14: The Bush administration said on Monday it will ask Congress for an additional $100 million in the next fiscal year for the World Bank for providing interest-free loans to developing countries.
The loans will be distributed by the International Development Association (IDA), the zero-interest rate lending arm of the World Bank.
The request reflects the US administration’s satisfaction with IDA’s progress on measuring results of its lending, said the US Treasury Department.
The US administration will seek an additional $200 million for interest-free lending if it determines IDA is making further progress in projects related to primary education, immunizations and time needed to start a business, the department said.
“The IDA is making strong progress toward ensuring that development resources are invested effectively,” said Treasury Secretary John Snow.
“Diagnosing... national accountability structures, sources of growth, nature of poverty, investment climate and adsorptive capacity” is critical to decisions on future lending, Snow said.
Last year, the United States achieved agreement on sweeping reforms in multilateral development banks, including a greater focus on measuring results. This enables IDA donors to link a portion of their contributions to the achievement of results.
The US has also committed to increase its budgetary request for IDA by 18 per cent. Of the $2.85 billion US contribution to IDA, $300 million is contingent on improving results in a concrete and measurable way.
During fiscal 2005, the US will link an extra $200 million to quantifiable results in the areas of education, health, and private sector development.
