International development agencies (IDAs) operate in a context of diverse stakeholder
interests. They need to consider the significance of each category of stakeholders to
determine the 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 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. However, the 'weaker' stakeholders ' development clients and
partner agencies, 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.