WB pledges $2 billion

Funds to enhance resilience to climate change, says Kim

World Bank (WB) Group president Jim Yong Kim, concluding a two-day trip to Bangladesh, focused on the country’s successes in reducing extreme poverty and pledged USD 2 billion over the next three years in new funding to help the country become less vulnerable to climate change. He announced this commitment at a press conference at the WB’s Dhaka office at Sher-e-Bangla Nagar in the city yesterday. About the pledge, Kim said he decided to provide the USD 2 billion commitment for climate change challenges after touring schools that double as cyclone shelters during major storms. He also visited rural communities in more remote locations that are enjoying the benefits of electricity in their homes and shops through solar systems as part of the country’s green-growth agenda. Kim met with rural residents who told him that electricity has transformed their lives, improving their livelihoods and building infrastructure for the entire community. “Bangladesh is among the countries most at risk from the impacts of climate change. We must confront climate change now as it hits the poor the hardest,” said Kim.  “Bangladesh has been a forerunner in adaptation and stronger disaster-coping mechanisms and these have reduced the impact of recent storms, cyclones, and floods. And the World Bank Group plans to help Bangladesh become even more resilient to climate change,” he added.
Bangladesh, with active community participation, has improved defensive measures, including early warning systems, cyclone shelters, evacuation plans, coastal embankments, reforestation schemes and increased awareness and communication. These measures have reduced deaths in major storms.  “The dramatic decline in deaths demonstrates that Bangladesh’s adaptation measures do work,” said Kim.
“I’m most impressed by the resilience of the people of Bangladesh at a time when climate change puts their lives and livelihoods at risk. Their determination to provide their children with better opportunities underpins Bangladesh’s powerful development story and the country can do even better if it addresses its challenges in climate change, infrastructure, human development, governance, and attracting private sector investments,” he added.
While Bangladesh has made great advances on these issues and many others, the country still faces many obstacles in reaching reach its goals to move from low-income status to middle income status, and to end extreme poverty by 2030, said the WB.
He cited three areas that the government can address in order to be successful. The first is to enact policy reforms that improve the business climate. “Now foreign direct investment in Bangladesh lags behind its neighbours; if the country attracts more investment from the private sector, it will mobilise funds necessary for infrastructure projects. Second, as the government correctly pointed out in its 7th Five-Year Plan, the country needs to strengthen its institutional capacity. And third, the five-year plan also importantly emphasises the needs to strengthen governance, which includes building a strong civil service, judiciary, public banks, tax collection and anti-corruption commission,” he said.
“We share Bangladesh’s zero tolerance for corruption, believing strongly that any fund diverted from beneficiaries amounts to stealing from the poor,” he added.  When asked about the security during his visit to Bangladesh, Kim said: “Really impressive, with the tight security.”
He added that terrorist attacks are occurring in the US and France as well, and that it is not an issue only with Bangladesh. Responding to another question, Kim said the WB follows a zero tolerance policy with respect to corruption. About the rate of interest of the USD 2-billion climate change fund, Annette Dixon, the WB’s vice-president for the South Asia region, said it would be very concessional as Bangladesh is an International Development Association (IDA) country. During his first day in Bangladesh, the WB president marked End Poverty Day to celebrate the country’s achievements in helping millions of people lift themselves out of poverty. The USD 2 billion pledge in new money for climate change is in addition to the USD 1 billion pledged by Kim on Monday to end childhood stunting in Bangladesh. Both amounts are contingent on a successful replenishment of the IDA, the WB’s fund for the poorest countries, which should be agreed in December.

WB pledges $2 billion

Funds to enhance resilience to climate change, says Kim

World Bank (WB) Group president Jim Yong Kim, concluding a two-day trip to Bangladesh, focused on the countrys successes in reducing extreme poverty and pledged USD 2 billion over the next three years in new funding to help the country become less vulnerable to climate change. He announced this commitment at a press conference at the WBs Dhaka office at Sher-e-Bangla Nagar in the city yesterday. About the pledge, Kim said he decided to provide the USD 2 billion commitment for climate change challenges after touring schools that double as cyclone shelters during major storms. He also visited rural communities in more remote locations that are enjoying the benefits of electricity in their homes and shops through solar systems as part of the countrys green-growth agenda. Kim met with rural residents who told him that electricity has transformed their lives, improving their livelihoods and building infrastructure for the entire community. Bangladesh is among the countries most at risk from the impacts of climate change. We must confront climate change now as it hits the poor the hardest, said Kim. Bangladesh has been a forerunner in adaptation and stronger disaster-coping mechanisms and these have reduced the impact of recent storms, cyclones, and floods. And the World Bank Group plans to help Bangladesh become even more resilient to climate change, he added. Bangladesh, with active community participation, has improved defensive measures, including early warning systems, cyclone shelters, evacuation plans, coastal embankments, reforestation schemes and increased awareness and communication. These measures have reduced deaths in major storms. The dramatic decline in deaths demonstrates that Bangladeshs adaptation measures do work, said Kim. Im most impressed by the resilience of the people of Bangladesh at a time when climate change puts their lives and livelihoods at risk. Their determination to provide their children with better opportunities underpins Bangladeshs powerful development story and the country can do even better if it addresses its challenges in climate change, infrastructure, human development, governance, and attracting private sector investments, he added. While Bangladesh has made great advances on these issues and many others, the country still faces many obstacles in reaching reach its goals to move from low-income status to middle income status, and to end extreme poverty by 2030, said the WB. He cited three areas that the government can address in order to be successful. The first is to enact policy reforms that improve the business climate. Now foreign direct investment in Bangladesh lags behind its neighbours; if the country attracts more investment from the private sector, it will mobilise funds necessary for infrastructure projects. Second, as the government correctly pointed out in its 7th Five-Year Plan, the country needs to strengthen its institutional capacity. And third, the five-year plan also importantly emphasises the needs to strengthen governance, which includes building a strong civil service, judiciary, public banks, tax collection and anti-corruption commission, he said. We share Bangladeshs zero tolerance for corruption, believing strongly that any fund diverted from beneficiaries amounts to stealing from the poor, he added. When asked about the security during his visit to Bangladesh, Kim said: Really impressive, with the tight security. He added that terrorist attacks are occurring in the US and France as well, and that it is not an issue only with Bangladesh. Responding to another question, Kim said the WB follows a zero tolerance policy with respect to corruption. About the rate of interest of the USD 2-billion climate change fund, Annette Dixon, the WBs vice-president for the South Asia region, said it would be very concessional as Bangladesh is an International Development Association (IDA) country. During his first day in Bangladesh, the WB president marked End Poverty Day to celebrate the countrys achievements in helping millions of people lift themselves out of poverty. The USD 2 billion pledge in new money for climate change is in addition to the USD 1 billion pledged by Kim on Monday to end childhood stunting in Bangladesh. Both amounts are contingent on a successful replenishment of the IDA, the WBs fund for the poorest countries, which should be agreed in December.