CHAIRMAN'S SUMMARY
                                     IDA Deputies Meeting
                                        Hanoi, Vietnam
                                         July 9-11,2004


1. Deputies of donor countries,joined by representatives of borrower countries and observers from
   other multilateral development banks, metin Hanoi to continue discussions onthe 14th
  replenishment of IDA resources. The meeting was preceded by a day-long discussion with
   Asian opinion leaders on critical development issues, particularly private sector development,
   deepening developmentpartnerships, and accelerating broad-based growth. Participants
   expressed their sincereappreciationto the Government of the Republic of Vietnamfor hosting
   the meeting, andfor providing delegates withan opportunityto observe a number of
   development projects at the conclusion ofthe meeting. This note reflectsthe chairman's senseof
   the discussions.

2. Participants agreedthat the useof grants in IDA should be anchored inthe assessment of
   countries' debt sustainability.Participantsagreed that the framework proposedby staff provided
   a basis fordevelopingthis approach. They askedfor work to test further hypotheses and options
   with respectto country classification, grant allocation mechanisms and thresholds, and financing
   of grants. In their discussion of the grants framework, Deputies reaffirmed their commitmentto
   maintain thestrengthof IDA's finances. Participants encouraged IDAto continue to engage
   with the International Monetary Fundin further developingthejoint Bank/Fund approach, and
   with othermultilateraldevelopment banks.

3. Participants discussed the regional development challenges and strategies for IDA14 with the
   Vice Presidentsfor four of IDA's major regions. They stressed the importanceof supporting
   country-led Poverty Reduction Strategies and continued effortsto maximize IDA's quality and
   development effectiveness.There was broad support for a strong replenishment under IDA14,
   which covers acritical investment periodin the campaignto meet the Millennium Development
   Goals (MDGs)by 2015. Many stressed the importanceof IDA maintaining its global role in an
   expanded developmentassistanceeffort focusedon the MDGs. Participants had an initial
   discussion ofcountry financing needs and the financial framework the replenishment, and
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   requested further work on the composition and dimensions of the IDA14 funding envelope.
   Participants confirmedtheir intention to address HIPC costs for the IDA14 period, and agreed to
   review HIPCfinancing further at the next replenishment meetingin October 2004.

4. Participants endorsed IDA's proposed approach to strongerresultsmanagement. They looked
   forward to some refinementsof the results monitoring system, and agreedto review progress at
   the time of the IDA14 mid-term review. Participants also supported the case for stronger
   assistanceto build results-monitoring capacityin IDA countries.

5. Participants welcomedan update by the Chief Economiston the development of a long-run,
   country-specific frameworkfor the MDGs, incorporating growth, absorptive capacity and the
   monitoring of aid effectivenessin IDA countries.

6. They agreedto hold their next meetingin Washington DCin October 2004.