The World Bank said Saturday it would provide poor countries with more than $55 billion for public work projects left in limbo when the recession dried up capital investment.
The goal is to create jobs and lay the foundation for future economic growth and poverty reduction. Africa is expected to see a largeportion of the investments, given the continent's needs.
''As developing countries are facing the trials of the global economic crisis, it is vitally important that economic stimulus packages in the developed world are accompanied by support for those who cannot afford multibillion bailouts,'' the bank's president, Robert Zoellick, said.
The announcement came as the bank and the International Monetary Fund held their spring meetings this weekend.
An organization set up by the bank's private sector arm will make $10 billion available for lending; the bank will provide the other $45 billion.
''These public-private partnerships in the infrastructure sector are a key component not only of the immediate response to the crisis but also of a long-term economic growth,'' France's finance minister, Christine Lagarde, said.
Germany's development minister, Heidemarie Wieczorek-Zeul, said that when funding sources became scarce, it left projects ``high and dry. And yet they are needed as key elements of development. Services such as water sanitation, energy, transport and telecommunications are vital in the fight against poverty.''
The bank said the financial crisis has depressed investment in such projects, particularly in developing countries. The total yearly financial gap for infrastructure investments, including maintenance, in developing countries could range from $140 billion to $270 billion.
The initiative follows a tripling in lending, to $12 billion, to support health, education and other safety net programs in poor countries.
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