Dear Minister of Development: -- The answer to USAID cuts should be increased support for IDA

Dear Minister of Development,

Some challenges in the world are so great that it can be hard to know where to start. The US cut in aid is just such a situation. With the stroke of a pen, the United States has turned back the taps for many of the world's poor. This will have serious consequences as America's share of global aid is as high as 30%.

But even in dark times, there is good news: If Norway is to do just one thing now, then there's opening up the moneybag of aid's superhero and kinderegg: the World Bank's development fund for the poorest, IDA. There is no more profitable, simple and flexible investment than that.

Why IDA? Because we simply get more development for the money.

While much of the aid is spread thinly outwards, IDA is one of the most effective channels we have to reach the very poorest countries in the world. About 75% of all funds go to low-income countries. And for every penny we contribute, the impact quadruples through co-financing and strategically wise investments.

For every billion invested in IDA, the poorest countries can receive a billion for health, a billion for education, a billion for climate and a billion for system and institutional strengthening. That's about as close to a spell we'll get in aid. In addition, IDA uses so little on administration, only 2.3% of the total budget. Even the most critical of aid must nod in recognition of this.

It is not just me who says that IDA is good — this is what countless evaluations say, not least the recipient countries themselves.

IDA is one of the largest channels of direct aid to low-income countries, which means that countries actually get to spend the money on what they think is most important, whether it's health, education, social safety nets, conflict prevention or climate.

In an era where we talk warmly about locally led development and ownership, IDA is one of the foremost tools for delivering on that. IDA's entrenchment in national development plans is power shift to the global south in practice.

Nor has Norad's CEO, Bård Vegar Solhjell, been able to hide his enthusiasm for this unique channel. In a Chronicle of Everything this fall, he strikes a blow for “the world's largest multilateral aid splice team.” That's what's worth listening to. He also justifies it in terms of efficiency, pointing out that the median return on assessed IDA projects is 24 percent.

With the United States now withdrawing from the world, Norway must choose to go the opposite way. Not just because it's the morally right thing to do, but because it's smart to invest in global cooperation for stability, poverty reduction and development. Aid, global health and climate action are not just charity -- they are also our first line of defense against emerging global crises.

Norway cannot possibly step in and support all those who now lose support from the United States, but through IDA we can reach the world's 77 poorest countries. It is possible, simple and will not require any additional administration. In the autumn, Norway announced a 50% increase in its contributions to IDA for the next three years, but it is time to adjust this already now.

Dear Minister of Development — IDA is one of the surest ways to grow aid crowns. An additional request to IDA is probably the easiest and wisest thing you as Minister of Development can do.

Norway can and should take global leadership at a time like now. The World Bank accepts extraordinary contributions at any time, so I challenge you hereby: Do you want to strengthen the aid superhero through an extraordinary contribution to IDA? I sincerely hope your answer will be yes.

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