Publication

This brief examines the role of the World Bank's International Development Association (IDA), prior to the spring 2013 negotiations. The author suggests the IDA's shareholders are likely to ask that the International Finance Corporation (IFC) continue to transfer a portion of its funds to the IDA. While this practice served its purpose, the author does not think that this is the best way for the IFC to contribute to economic growth in IDA-eligible countries. Instead, IDA’s shareholders should insist that the IFC invest in the private sector. They should also encourage the IFC to take greater risks in poorer countries.