Yesterday, the World Bank reported that the US has lost its status as the largest donor to the Bank’s main fund for poor countries, as Britain secured a record amount of aid with a pledge of increased funding.
Britain pledged $4.2 billion for the period from July 2008 through June 2011, after negotiations that began in March in Paris and ended with two rounds of talks in Berlin.
What does it mean to the US? Firstly, losing its position as the top donor could weaken Washington’s influence over the World Bank, which is the largest provider of development assistance to poor countries, and over policies that determine the cash flow.
The US pledged a very substantial contribution but is now down to second place after Britain,
A total of 45 donor countries, the highest number ever, promised a record total of $25.1bn at the Berlin talks, with a further $16.5bn coming from the bank and previous donor pledges. The total of $41.6bn represents an increase of $9.5bn over the previous funding period and will support around 80 countries, with a focus on African countries.