An earlier version of this paper was presented at the annual meeting of the Information Management Working Group of the European Association of Development Re-search and Training Institutes (EADI) which took place 6–9 September 2000 in Bergen, Norway. The paper first provides an introduction to knowledge management as a business strategy. It deals with the main components of the approach: continuous improvements; the building a new business culture; its approach to information and to people; and its emphasis on organizational learning. The second part briefly considers the role played by new technology in knowledge management. The third part then reviews the application of the strategy in development agencies, using the example of the World Bank which has pioneered the application of this approach in the development arena. Finally, it argues that knowledge management is both a business and a development strategy. Given the growing adoption of knowledge management, much of its vocabulary has entered the development discourse. Terms such as community of practice and best practices can now be found in development-related discussions although their etymology is not always clear. To introduce the knowledge management terminology, a glossary is also provided.