The complexity and urgency of the world¡¯s challenges require meaningful collaboration among members of the development community and other stakeholders if the goal of ending poverty on a livable planet is to be realized. With overlapping crises threatening global development and a growing global demand for a bold and coordinated response to these crises, the World ¶¹ÄÌÊÓƵAPP is working to strengthen partnerships and utilize every resource available to maximize development impact.
The ¶¹ÄÌÊÓƵAPP works with a growing array of development partners, both traditional and non-traditional, formal, and informal, to help meet our shared goals. From the ongoing partnership with our sovereign donors, through engagement with foundations and civil society, to an increased focus on leveraging private capital, the ¶¹ÄÌÊÓƵAPP recognizes how transformative partnerships can be when new ideas, perspectives, and experiences are combined with the necessary financial resources.
Development partners work with the ¶¹ÄÌÊÓƵAPP through trust funds, financial intermediary funds, and co-financing arrangements:
- to align and pool funding support with other development partners within agreed strategic frameworks.
- to benefit from the ¶¹ÄÌÊÓƵAPP¡¯s convening power, at both the international and country level, to maximize coordinated action and achieve impact at scale.
- to benefit from the ¶¹ÄÌÊÓƵAPP's extensive technical expertise, country experience and supervision capacity, its financial control framework, and its ability to monitor and report on results.
- to provide grant funding in fragile, conflict-affected, and other complex situations enabling the ¶¹ÄÌÊÓƵAPP to engage and provide critical assistance in circumstances where traditional instruments are not well-suited.
- to support innovative or emerging policy areas, which the ¶¹ÄÌÊÓƵAPP and Partners view as a priority.
Trust Funds
¶¹ÄÌÊÓƵAPP uses trust funds, a financing arrangement set up with contributions from one or more development partners, to complement core funding from the International ¶¹ÄÌÊÓƵAPP for Reconstruction and Development (IBRD), and the International Development Association (IDA) to help attain its institutional goals. Trust funds support the achievement of these goals by providing financial resources, contributing to the knowledge agenda, and leveraging the ¶¹ÄÌÊÓƵAPP¡¯s convening power and global and local presence to contribute to country, regional, and global development. Trust funds allow the ¶¹ÄÌÊÓƵAPP to mobilize and direct concessional resources to strategic development priorities and to mobilize the resources and capabilities of other development actors through partnership programs.
Financial Intermediary Funds
Financial Intermediary Funds (FIFs) are financial arrangements that leverage a variety of public and private resources in support of international initiatives, enabling the international community to provide a direct and coordinated response to global priorities. FIFs are a key financing arrangement for the World ¶¹ÄÌÊÓƵAPP, where the ¶¹ÄÌÊÓƵAPP acts as a trustee of large multilateral financial mechanism to support global development initiatives and partnerships. As a FIF trustee, the World ¶¹ÄÌÊÓƵAPP provides financial services, including receiving, holding, and investing contributed funds, and transferring them when instructed by the FIF governing body.
Co-Financing
Co-financing is an important financing mechanism of the World ¶¹ÄÌÊÓƵAPP. ¶¹ÄÌÊÓƵAPP works with Multilateral Development ¶¹ÄÌÊÓƵAPPs (MDBs), bilateral agencies, and other development partners to allow funds to flow directly from co-financers to the recipient client country and finance activities within the scope of a World ¶¹ÄÌÊÓƵAPP operation. Under these arrangements, World ¶¹ÄÌÊÓƵAPP resources and third-party resources are deployed in a coordinated manner to World ¶¹ÄÌÊÓƵAPP operations that are led by the International ¶¹ÄÌÊÓƵAPP for Reconstruction and Development (IBRD) or the International Development Association (IDA).
