.                           CHAIRMAN'S SUMMARY                                      38383
                                     IDADeputiesMeeting
                                        Athens, Greece
                                     December 13-14,2004


1. Deputies of donor countries,joined by representativesof borrowercountriesand observersfromother
   multilateral developmentbanks, met in Athensto continuediscussionson the 14` replenishment of IDA
  .resources. Participantsexpressedtheir sincereappreciationto the Government of Greecefor hosting the
   meeting. This note reflectsthe chairman's sense of the discussions.

2. Participantsagreed on IDA'spolicy framework forpovertyreduction, and the overall themeof the report,
   working together with other developmentpartnersto achieve the Millennium Development Goals
   (MDGs). Core objectivesinclude stimulatingsustainableand equitable economicgrowth, reducingthe
   debt vulnerabilityof IDA countriesthrough theallocationof grants,implementinga frameworkfor
   monitoringand managing IDA results, and strengtheningIDA supportfor the private sector. Participants
   also welcomedthe decision to fully disclosethe performance ratings that inform the allocation of IDA
   resources.

3. There was consensusthat IDA'spolicy framework should be underpinnedby a strongIDA14
   replenishmentto maintain IDA's key role in the financing of developmentand the global effort to reach
   the MDGs.

4. Participantsagreedthat debt sustainabilitywill be the basis for the allocationof grantsunder IDA14.
   They agreed that thejoint Bank-Fund Debt Sustainability Frameworkfor low-income counties will
  provide the analyticalunderpinningfor IDA14 grants. Inparticular,they endorsed moreprudent debt
  thresholds, the approach for allocatingIDA grants, and the proposalfor dealingwith their financial cost.
   Bank staffwill report back at the mid-term reviewonthe implementation (including theshare of grants)
   and reassessmentof the debt sustainabilityframework, as well as the feasibilityof a facilityto assist
  borrowers confrontingexternalshocks.

5. Participantswelcomedimprovementsin collaboration amongthe World BankGroupinstitutions and
  with externalpartnersto promote private sectordevelopment in IDAcountries. Key elementsof the
   enhancedprogram includesupport for improved investmentclimatesin IDA countries, innovative
   support for small and medium enterprises,and better and affordableaccessof poor people to privately-
   provided basic services.

6. ParticipantsendorsedIDA's effortsto strengthen statisticalcapacityin client countries. Such efforts are
   crucial for the IDA14 Results Management System agreedby the participantsin Hanoi, as well asforthe
   client countries' effortsto monitorprogress toward the MDGs.

7. Participantswelcomed enhanced IDA action on three issues emergingfromthe "Working Together"
   agenda: IDA's role in conflict-affectedand post-conflictcountries;improved supportfor small states; and
  the developmentof indicatorsof harmonizationto encourage concrete actionsby all development
  partners.

8. Participantswere provided with recommendations from nongovernmental organizations that had
   commentedon anearlier draft of the IDA14report, and agreed that NGO recommendations will be
   included as appropriate. The final draftof the report will be sentto the participantsfor confirmation.

9. Donors agreedto a replenishmentthat representsa 30 percentincrease of commitment authorityover
   IDA13. They agreedthat, in additionto commitmentsmade in Athens,consultationswere still neededin
   some.capitalsto encouragefurthercontributionsto closethe remainingfinancing gap,leadingto a final
   meeting to concludethe replenishmentwithin two months.