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CGD in the News

With Success, IDA Must Begin to Reinvent Itself (Huffington Post)

March 28, 2011

Ben Leo's post on IDA was placed in the Huffington Post

From the Article

Fast forward to the year 2025. IDA will begin negotiating its 21st Replenishment Agreement. As with every other replenishment since 1960, donor countries will sit around a table and haggle over what sectors to promote, how to measure IDA's impact, and how to allocate its resources. And, they will be fiercely negotiating how much money to put in IDA's hands. Nothing will have changed. That's just how these negotiations work. However, there will be one huge difference this time around. IDA will be operating in a vastly different world. A world where its existing way of doing business may no longer make sense.

According to new research by Todd Moss and me, IDA's client base is projected to change dramatically over the coming years. By 2025, there could be only 30 poor country clients left - down from roughly 70 now. There would be 1 billion people living in these countries - instead of 3 billion living in current IDA-eligible countries. Overall, the remaining clients will be overwhelmingly African - with only a few countries scattered across other regions. All of this will be driven by an expected, and much anticipated, wave of countries graduating from cheap IDA loans to borrowing from the international credit markets. Unlike other organizations, a successful IDA fundamentally means that it eventually will put itself out of business.

Read the Article