IDB Joins Brazil's Global Alliance to Combat Hunger and Poverty with $25 Billion Commitment

To support the Alliance's mission, the IDB has pledged up to $25 billion in financing for its member countries between 2025 and 2030.

The Inter-American Development Bank (IDB) has officially joined the Global Alliance Against Hunger and Poverty, a flagship initiative spearheaded by Brazil during its G20 Presidency. The Alliance aims to accelerate the eradication of hunger and poverty while reducing global inequalities.

"The IDB is proud to join this transformative initiative," said IDB President Ilan Goldfajn. "With Brazil's leadership and the collective strength of multilateral banks and international partners, we will transform commitments into impactful actions, fostering significant advancements against hunger and poverty across Latin America and the Caribbean."

A $25 Billion Investment in Poverty and Hunger Alleviation

To support the Alliance's mission, the IDB has pledged up to $25 billion in financing for its member countries between 2025 and 2030. These funds will support locally-led initiatives targeting poverty and hunger, prioritizing vulnerable groups, including women, Afro-descendants, and Indigenous populations, who bear the brunt of poverty.

Key targets include:

Ensuring 50% of newly approved IDB projects directly benefit poor communities.

Allocating 60% of IDB Lab projects to benefit poor and vulnerable populations.

Leveraging Innovative Financing: The Role of SDRsTo amplify its impact, the IDB plans to use Special Drawing Rights (SDRs) reallocated from the International Monetary Fund (IMF) in partnership with the African Development Bank (AfDB). This hybrid financing model enables the IDB to multiply resources. For every $1 billion of SDRs, the IDB can generate $7 billion in financing, translating into tangible benefits, such as:

4 million families in extreme poverty receiving cash transfers.

1.3 million mothers and children accessing critical healthcare and nutrition.10 million children benefiting from expanded school meal programs.600,000 smallholder farmers adopting climate-smart technologies to improve productivity.

The IMF Board has approved this innovative SDR approach, setting a precedent for scaling resources to fight poverty and hunger.

Comprehensive Technical Assistance

The IDB will also provide $200 million in non-reimbursable technical assistance to design and scale priority policies under the Alliance framework. Key focus areas include:

Expanding social protection programs for children and families.

Investing in early childhood development, quality education, and health.

Enhancing school meal programs and nutrition services.

Providing climate-smart agricultural technologies for small farmers.

Improving access to water and basic infrastructure for underserved populations.Monitoring ProgressIn collaboration with Brazil, the IDB will conduct a mid-term review of the Alliance to evaluate progress and recalibrate strategies, ensuring the initiative achieves its goals effectively.

A Broader Vision for Change

President Goldfajn emphasized the importance of collective action, highlighting that the Alliance represents a unique opportunity to mobilize global resources and expertise. “Together, we can make measurable strides in the fight against hunger and poverty, paving the way for a fairer, more resilient world.”

With this historic commitment, the IDB is poised to play a pivotal role in achieving the Alliance's vision, reinforcing its leadership in addressing the intertwined challenges of poverty, hunger, and inequality across the Americas and beyond.