Management’s Response to the Review of the SDF(U) Resource Allocation System
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Summary

Considerable attention was given during SDF 5 replenishment negotiations to the strategy for allocating the limited concessionary resources that were made available. Contributors drew on the experience of other Multilateral Development Banks (MDBs) and approved a new system to replace the old method of allocating resources by country groups. The objective of the new system is to strengthen development results by targeting needs, placing resources where they are likely to be effective, and giving member countries an incentive to perform well.