1. Introduction
The world continues to face geopolitical crises and heightened global economic uncertainty. The current situation in the Middle East is posing a significant impact on the global economy and financial markets, and could undermine stable economic growth across countries.
In addition to near-term uncertainties, there is also a need to address long‑term development challenges, including poverty, health issues, debt issues, and natural disasters. Against this backdrop, Japan hereby states its expectations for the role to be played by the World Bank Group (WBG) in addressing the challenges developing countries face, as well as its own contributions to the WBG.
2. Enhancing the Functions and Roles of the WBG
While development challenges facing the world are becoming increasingly diverse and complex, resources for development assistance are limited. In this context, it is essential to deliver assistance in an efficient and effective manner, while mobilizing private capital and promoting ownership in emerging and developing countries.
In order for the WBG to function efficiently and effectively as a core of the multilateral development banks (MDBs) while maximizing its development impact, it is important that all WBG institutions collaborate organically under the One WBG approach. We welcome the integration of the WBG’s verticals through the organizational restructuring implemented in January this year. We expect the WBG to synthesize the WBG’s knowledge and feed it back into operations across the Group, thereby synergies between sovereign and non‑sovereign operations will be enhanced. For its part, Japan will also contribute by fully leveraging its human resources and expertise from both the public and private sectors, including academia, across areas such as global health and disaster risk management.
For efficient and effective support, it is also important that the WBG better incorporate the voices of developing countries in its operations. To this end, we welcome the agreement on Voice reform proposals under the 2025 Shareholding Review, and looks forward to its swift implementation. In order for developing countries, especially smallest poor countries, to implement the 2018 Capital Increases agreement, it is important to address challenges related to their subscriptions, and we expect further progress in discussions toward identifying the solutions.
3. Addressing Development Challenges Prioritized by Japan
Japan hereby elaborates on the priorities to which Japan attaches particular importance, as well as its expectations for the WBG in these policy areas.
(1) Critical minerals
Strengthening supply chains for critical minerals, including rare earths, is an urgent challenge, as it contributes to the creation of high-quality jobs and sustainable economic development in mineral-producing countries, while also ensuring a stable supply for importing countries. We commend the WBG’s efforts under its Minerals and Metals Sector Strategy to support mineral-rich countries in formulating and implementing country-specific strategies. Japan is pleased to host an event on critical minerals together with France and with the support of President Banga at this Spring Meetings, with the participation of representatives of MDBs and like-minded countries. We expect the WBG to strengthen its support related to critical mineral supply chains, in collaboration with regional development banks (RDBs) such as the Asian Development Bank (ADB) and the Inter-American Development Bank (IDB), as well as with development finance institutions (DFIs).
The RISE Partnership is WBG’s important initiative to promote diversification in the midstream and downstream segments of critical mineral supply chains in developing countries. Japan welcomes the progress achieved in countries such as Zambia and Malawi, including their completion of the country roadmaps and efforts to advance their implementation in cooperation with the private sector. As a partner who has worked together with the WBG to promote the RISE Partnership, we expect that the initiative will also contribute to strengthening rare earth supply chains.
(2) Global health
We welcome the World Bank’s steady efforts, in collaboration with the World Health Organization (WHO), toward achieving universal health coverage (UHC). In particular, the formulation of National Health Compacts in each country constitutes a cornerstone initiative for advancing UHC under strong country ownership and through coordinated support from development partners. Japan will continue to support efforts to develop National Health Compacts in a greater number of countries, as well as concrete actions by countries based on these Compacts.
In developing and implementing National Health Compacts in each country, it is essential to build sustainable health financing systems through finance-health collaboration. From this perspective, we welcome the formal launch of the UHC Knowledge Hub by the World Bank, together with the WHO, at the UHC High-Level Forum held last December. The in-person training program conducted under the Hub aims to foster further finance–health collaboration within and across countries through a peer learning process, in which finance and health officials share their experiences and learn from one another. Going forward, we expect that, through the coordinated support led by the World Bank and in collaboration with other development partners including regional development banks and the Japan International Cooperation Agency (JICA), the outcomes of the training program will translate into concrete health financing reforms at the country level.
In addition to efforts toward achieving UHC, further strengthening pandemic prevention, preparedness, and response (PPR) for future health emergencies remains essential. Japan will continue to contribute to the strengthening of pandemic PPR in close cooperation with the World Bank, including through the Pandemic Fund and relevant trust funds.
(3) Disaster risk management, infrastructure, and digital
Japan has been working to mainstream disaster risk management in development through the Japan–World Bank Program on Disaster Risk Management, including support for building disaster‑resilient infrastructure. In addition, through the Tokyo Development Learning Center (TDLC), Japan has strengthened collaboration among officials from developing countries, the WBG staff, and Japanese cities and experts, thereby supporting urban development and the resilient and high‑quality infrastructure development by leveraging Japan’s extensive experience with disasters. We expect that such knowledge will be further scaled across operations under the WBG Knowledge Bank, further enhancing its activities.
From the perspective of quality infrastructure investment, we welcome procurement reforms that place greater emphasis on quality evaluation. When the lifecycle cost of infrastructure is taken into account, an emphasis on quality also yields cost benefits in the long run. It is crucial for the World Bank and other MDBs to support capacity building in partner countries toward procurement that emphasizes quality. we also continue to expect the World Bank’s outreach efforts to companies, including through the Early Market Engagement, so as to make effective use of high‑quality technologies and expertise offered by a diverse range of firms.
The development of energy infrastructure lays the foundation for job creation and economic development by improving access to electricity while also contributing to digitalization across all sectors. From this perspective, Japan welcomes the WBG’s efforts under Mission 300. Japan will contribute to expanding electricity access in Africa by leveraging its technologies, including through a contribution of $2.1 million to the Multilateral Investment Guarantee Agency’s (MIGA) Renewable Energy Catalyst Trust Fund (RECTF), as well as a contribution of $18.4 million to the energy sector through the Policy and Human Resources Development (PHRD) Fund. Furthermore, to support countries in advancing digitalization while ensuring cybersecurity and the protection of privacy, Japan will contribute $4.2 million to the Cybersecurity Multi-Donor Trust Fund, following its contribution of $5 million to the Digital Development Partnership (DDP) 2.0 in December last year.
We welcome the conclusion of the 9th replenishment negotiations of the Global Environment Facility (GEF), which responds to global environmental challenges, including biodiversity conservation, climate change, chemical hazards control and pollution prevention in international waters. We expect the GEF to prioritize support for the least developed countries (LDCs) and small island developing states (SIDS) , mobilize private finance and promote projects efficiently and effectively.
(4) Debt issues and domestic resource mobilization
Ensuring debt transparency is a vital element for stable macroeconomic and fiscal management. To enhance debt transparency, Japan once again urges all G20 members to participate in the World Bank’s Data Sharing Exercise (DSE). In addition, Japan hopes that the initiative jointly undertaken by the World Bank and Japan in Indonesia to conduct real-time digital reconciliation will be expanded to other countries. Enhancing debt transparency also requires strengthening the capacity of debtor countries. In this regard, we look forward to tangible early results from the Debt Management Facility (DMF) Phase IV of the WBG and the IMF.
On debt restructuring, accelerating the process under the Common Framework remains an ongoing challenge. In this context, we welcome the update of the playbook at the Global Sovereign Debt Roundtable (GSDR), which serves as a user manual for debt restructuring. We look forward to the continued role of the WBG and the IMF in accelerating and facilitating debt restructuring processes, including efforts to improve the implementation of the Common Framework.
Strengthening domestic resource mobilization (DRM) is an urgent challenge for developing countries to secure financing for sustainable economic growth and to attract investment. In the area of taxation, it is important to accurately identify the challenges faced by developing countries and enhance the effectiveness and efficiency of technical assistances through the dialogues among tax experts from countries and international organizations. In this regard, we welcome that the Tax and Development Conference, focusing on DRM, was held in Tokyo last month by the Platform for Collaboration on Tax (PCT) comprised of international organizations including the WBG and the IMF. Based on its concluding statement, we expect the relevant international organizations to further collaborate to support capacity building and institutional strengthening, by leveraging their respective comparative advantages, in a manner that respects developing countries’ ownership, while also taking into account the need of the enhanced supports in the area of international taxation as well as to the fragile states and SIDS.
(5) Pacific Island countries
Pacific Island countries face vulnerabilities stemming from their geographical characteristics, and continued support that takes into account the small project size and associated cost challenges remains important. We welcome the progress in development of the WBG’s “Small States Strategy” in this regard. Under this strategy, we expect the WBG to further strengthen partnerships with RDBs and national DFIs, and to leverage such partnerships for procurement and co-financing.
The withdrawal of correspondent banking services from the region threatens the soundness and inclusiveness of financial systems, which poses serious challenges not only to economic development but also to the stability of social activities. With regard to the World Bank’s Correspondent Banking Relationships (CBR) Project, Japan is providing support through the PHRD, and also is leading discussions on the establishment of regional payment aggregation mechanism—the Pacific Payment Mechanism—as a medium to long term solution to CBRs, including exploration of the potential use of digital money.
In recent years, the region has become increasingly vulnerable to more severe natural disasters, resulting in greater damages. Against this backdrop, the promotion of disaster risk financing has become indispensable. From this perspective, in cooperation with the World Bank and ADB, Japan plans to provide a yen loan to the Solomon Islands that incorporates a Climate Resilient Debt Clause (CRDC), marking the first time Japan has included such a clause in its lending.
We will continue to provide effective support, while respecting the ownership of Pacific Island countries, in close collaboration with the World Bank, the IMF, ADB, and key development partners in the region.
4. Ukraine
Russia’s aggression against Ukraine is an outrageous act that shakes the very foundation of the international order. Achieving a just and lasting peace as soon as possible is of utmost importance, and Japan remains committed to providing further support to Ukraine in collaboration with like-minded partners.
We welcome the approval of a new IMF Extended Fund Facility (EFF) program, reflecting the Government of Ukraine’s continued efforts to advance reforms despite the hostile conditions under which the war continues.
To address Ukraine’s financial needs in the first half of 2026, Japan has front-loaded part of its Extraordinary Revenue Acceleration (ERA) Loan for Ukraine, which is to be repaid by future flows of extraordinary revenues stemming from immobilized Russian sovereign assets. Furthermore, we have decided to provide an additional $4.5 billion of credit enhancement to the International Bank for Reconstruction and Development (IBRD) loans to support Ukraine’s continued reforms.
According to the fifth Rapid Damage and Needs Assessment (RDNA5) prepared by the WBG, Ukraine’s reconstruction needs are enormous. Mobilizing capital, technology, and expertise from the private sector is essential for Ukraine’s reconstruction. Japan will make an additional contribution of $10 million to the “Support for Ukraine’s Reconstruction and Economy” (SURE) Trust Fund established at the MIGA.
5. Concluding Remarks
Japan commends the WBG and the IMF, under the leadership of President Banga and Managing Director Georgieva respectively, for continuing to address the ever-complicated global development challenges, including through close collaboration with other institutions. Japan remains committed to providing support to the WBG and the IMF, including through human resource contribution, so that both institutions may continue to play a leading role in the further development of the global economy.
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