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This study is focusing on developing and implementing KM strategies in the international development organizations. The aim of the research is to investigate whether there is an agreed upon model for developing a KM system that achieves an effective and successful implementation. It proposes a model based on examining some distinguished attempts made so far in that area world-wide, in addition to focusing on the experience of one international development agency, CIDA, Egypt. The study uses the case study method to examine thoroughly the experience of the Canadian Agency for International Development in Egypt, in designing and implementing a KM strategy. The model identifies new criteria for implementation in similar entities and emphasizes the importance of adopting a balanced participatory approach in designing and implementing a KM strategy in international development organizations in order to achieve a sustainable and effective implementation.