• News
    • Latest news
    • News search
    • Health
    • Finance
    • Food
    • Career news
    • Content series
    • Try Devex Pro
  • Jobs
    • Job search
    • Post a job
    • Employer search
    • CV Writing
    • Upcoming career events
    • Try Career Account
  • Funding
    • Funding search
    • Funding news
  • Talent
    • Candidate search
    • Devex Talent Solutions
  • Events
    • Upcoming and past events
    • Partner on an event
  • Post a job
  • About
      • About us
      • Membership
      • Newsletters
      • Advertising partnerships
      • Devex Talent Solutions
      • Contact us
Join DevexSign in
Join DevexSign in

News

  • Latest news
  • News search
  • Health
  • Finance
  • Food
  • Career news
  • Content series
  • Try Devex Pro

Jobs

  • Job search
  • Post a job
  • Employer search
  • CV Writing
  • Upcoming career events
  • Try Career Account

Funding

  • Funding search
  • Funding news

Talent

  • Candidate search
  • Devex Talent Solutions

Events

  • Upcoming and past events
  • Partner on an event
Post a job

About

  • About us
  • Membership
  • Newsletters
  • Advertising partnerships
  • Devex Talent Solutions
  • Contact us
  • My Devex
  • Update my profile % complete
  • Account & privacy settings
  • My saved jobs
  • Manage newsletters
  • Support
  • Sign out
Latest newsNews searchHealthFinanceFoodCareer newsContent seriesTry Devex Pro
    • News

    Rethinking of IDA Business Model Must Start Now, Experts Say

    By Ma. Rizza Leonzon // 25 March 2011

    The ultimate barometer of the International Development Association’s success in aiding poor nations is when it eventually puts itself out of businesses, experts suggest. The World Bank’s fund for the poorest of countries may be close to achieving this goal by 2025, they add.

    A new research by the Center for Global Development’s Ben Leo and Todd Moss claims that by 2025, IDA could be offering assistance to only 30 poor nations, down from about 70 countries now. The remaining IDA clients would be “overwhelmingly” African countries, the two experts suggest, noting the expected departure of huge IDA recipients such as India, Vietnam and Nigeria. 

    “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,” Leo writes in a blog post for CGDev.

    Leo recommends that the IDA start rethinking its business models as early as now, urging the fund to reduce its “top-line financing envelope,” which would entail “progressively lower levels” of donor financing over time. 

    The IDA could also opt to “complement or replace” its current country-based lending model with a “wholly different” approach for funding global public goods, Leo suggests, given the global scale of development challenges today. 

    “Regardless of the ultimate direction taken, IDA can be assured that change is coming.  It might not come immediately, but it will come.  Instead of resisting the waves of progress, it should bask in their afterglow. But more importantly, it should begin a long-term reinvention strategy now like any other world class organization would,” Leo writes.

    Read more development aid news.

    • Funding
    Printing articles to share with others is a breach of our terms and conditions and copyright policy. Please use the sharing options on the left side of the article. Devex Pro members may share up to 10 articles per month using the Pro share tool ( ).

    About the author

    • Ma. Rizza Leonzon

      Ma. Rizza Leonzon

      As a former staff writer, Rizza focused mainly on business coverage, including key donors such as the Asian Development Bank and AusAID.

    Search for articles

    Related Stories

    UK AidWill the UK renege on its pledge to IDA?

    Will the UK renege on its pledge to IDA?

    EducationAs education funding crumbles, the sector must ‘get its house in order’

    As education funding crumbles, the sector must ‘get its house in order’

    Sponsored by The Power of NutritionOpinion: Let’s scale what already works in nutrition financing

    Opinion: Let’s scale what already works in nutrition financing

    The Trump effectCould the US pull out of the World Bank? Unlikely — but not impossible

    Could the US pull out of the World Bank? Unlikely — but not impossible

    Most Read

    • 1
      How low-emissions livestock are transforming dairy farming in Africa
    • 2
      The UN's changing of the guard
    • 3
      Lasting nutrition and food security needs new funding — and new systems
    • 4
      The top local employers in Europe
    • 5
      The power of diagnostics to improve mental health
    • News
    • Jobs
    • Funding
    • Talent
    • Events

    Devex is the media platform for the global development community.

    A social enterprise, we connect and inform over 1.3 million development, health, humanitarian, and sustainability professionals through news, business intelligence, and funding & career opportunities so you can do more good for more people. We invite you to join us.

    • About us
    • Membership
    • Newsletters
    • Advertising partnerships
    • Devex Talent Solutions
    • Post a job
    • Careers at Devex
    • Contact us
    © Copyright 2000 - 2025 Devex|User Agreement|Privacy Statement