The World's Bank International Development Association (IDA), helps poverished countries by providing grants and zero or close-to zero interest loans for projects and programs that aim to help economic growth and stability. The IDA is one of the worlds largest sources of assistence for 74 of the world most poverished countries, 39 of which are found in Africa. Since being founded, IDA has given $458 billion to 114 countries.
On January 23rd, 2024, The World Bank offically approved a $300 million Development Policy Operation for Ghana. This policy will help maintain and grow Ghana's economy by restoring debt sustainability. This is the first of three, $300 million dollars operations for crisis response and resilience in Ghana. The main goal of the policy is to 1.) restore fiscal sustainability 2.) support financial sector stability and private sector development 3.) improve energy sector financial discipline and 4.) strengthen social and climate resilience. Ghana is looking forward to focusing on the tasks ahead and puting fourth vital efforts to maintain momentum.
I enjoyed reading this article because I will (hopefully) be traveling to Kenya over the summer for a summer program that would allow me to serve and shadow dentists in underserved communities. The work that is being done to progress infrastructure and economy is astounding and I think more of the world needs to look into giving their time and energy for programs that propel societal well-being.
The idea of helping other countries serves an altruistic purpose as well as an economic benefit for the world as well. When other countries are doing better in terms of production it helps the rest of the world as well.
ReplyDeleteI recently learned about micro-loans during my EMF Seminar Course with professor Rahman and I am curious if part of the $300 million will be used to fund micro loans for people in Ghana. Micro-loans are small loans given to people who have little to no savings, no credit history, and no collateral. A micro-loan can allow these people to start a small business and gain savings. One might use a micro-loan to buy a sewing machine, then use their profits to slowly pay back their loan while also affording basic living expenses that previously were difficult for them to afford due to unstable wages.
ReplyDeleteI think loaning to a country to increase their economic stability and financial sectors is great. What's interesting to learn is how this loan IDA established this "low-zero interest loan" in the 1960's and how it helped poorer countries grow and not charge them for further interest upon repayment. It shows that there is a way to help other countries grow without taking advantage of their financial situation.
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