Abstract

This paper discusses the present method and three alternative ways the International Development Association (IDA) — the World Bank's concessional loan facility — might be financed. All cost the donors less than the present system, while providing borrowers with the same amount of aid. The alternatives also have drawbacks however, that may limit IDA's future capabilities in certain respects. The paper also discusses a way IDA's funds might be supplemented temporarily if the donors have difficulty implementing the pending 11th IDA replenishment plan.

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