Managing international development agencies (IDAs): the significance of external stakeholders

Abstract

International development agencies (IDAs) operate in a context of diverse stakeholder interests. This requires them to consider the significance of each category of stakeholders to determine the level of interest and power to influence the operations of the IDA. Using interviews and mail questionnaires, fifty-six Australian-based IDAs were examined to determine the extent to which they perceive external stakeholders as influencing their work. The research showed that two categories of stakeholders – donors and governments, were considered the most influential and powerful, hence the need to give priority to their expectations and needs. The “weaker” stakeholders – development clients and partner agencies, had a high level of interest but low power of influence over IDAs. However, they legitimise the existence of IDAs, hence their needs cannot be overlooked. The challenge for the IDA is in balancing the needs of its different categories of stakeholders as ignoring some could result in undermining its credibility.