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Title page
Contents
Abstract 1
Introduction 5
How do small states access IDA? The Small Economies Exception (SEE) and vulnerability 7
The SEE now covers nearly a third of countries with access to IDA 7
The SEE functions like a vulnerability criterion for small states' access to IDA 10
Small states use IDA to invest in place-based adaptation. Future investments in people-based adaptation could also be useful 14
Meeting the need for scaled-up adaptation investment: Two options 16
Option one: Allow small states that receive IDA grants the ability to trade some of this grant financing for a larger volume of concessional loans while retaining the SEE 16
Option two: Strengthening consideration of the causes of debt distress when allocating IDA's grant financing 19
New instruments for disaster response 23
Historical tools: Avenues to receive more funding when a crisis occurs are highly valued by small states 23
New tools: More flexibility in using existing financing during crises is yet to be fully rolled out and tested 24
Key administrative reform issues for small states 26
Conclusion 27
Endnotes 28
Table 1. Wealthier SEE countries IDA as a portion of ODA commitments and risk of debt distress rating 9
Table 2. The proportion of IDA commitments 2018-2022 on average across sectors 14
Table 3. The proportion of IDA adaptation finance and projects 2018-2022 on average across sectors 15
Table 4. SEE IDA grant recipients sample of debt statistics 17
Table 5. Non-SEE IDA grant recipients sample of debt statistics 21
Figure 1. IDA disbursements to small states, constant USD 2022 6
Figure 2. SEE income per capita, IDA finance type, and World Bank graduation thresholds 9
Figure 3. Vulnerability Indexes and GNI per capita: EVI, CRI, WRI and MVI respectively 12
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