FROM THE OFFICE OF PUBLIC AFFAIRS

We welcome the World Bank Executive Board's approval of a new multilateral financing package to replenish the Bank's International Development Association (IDA), which provides concessional development finance for the world's poorest countries. The new funding will enable IDA to provide additional concessional lending of $20.5 billion through June 30, 2002, including up to $3 billion per year for sub-Saharan Africa.

Especially significant are commitments designed to improve transparency and boost IDA's effectiveness in reducing poverty and promoting sustainable economic development. In particular, the IDA agreement calls for: stronger linkage between new lending and borrower performance, including explicit consideration of good governance and efforts to combat corruption; fuller consultation with the public in developing Bank programs and publication of key planning documents; and adoption of an appropriate inspection function for the Bank's private sector operations.

Together, the new IDA financing and policy reforms represent a solid and cost-effective vehicle for U.S. support for poverty reduction and economic growth world-wide.