This paper discusses the present method and three alternative ways the
International Development Association (IDA) - the World Bank's conces
sional loan facility - might be financed. All cost the donors less tha
n the present system, while providing borrowers with the same amount o
f aid. The alternatives also have drawbacks however, that may limit ID
A'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. (C)
1997 Elsevier Science Ltd.