World Bank Promises and Pitfalls
A general view on what World Bank situation is in.
What factors erode the legitimacy of World Bank? They are:
- Democratic governance;
- Accountability;
- Weaknesses in bureaucratic transparency;
- Corruption within borrowing nations; and
- Perceptions of ideological rigidity.
The other scenarios that prevail are:
- Unchecked mission creep;
- Persistent gaps between policy mandates and performance; and
- A checkered history of results from development loans fuel criticism of the bank’s effectiveness.
Are there obvious initiatives from President Paul Wolfowitz during his term? They are:
- Proposed an agenda to refocus the priorities of the bank;
- Reiterate his predecessors commitment to enhance the bank’s accountability and deliver results.
What are the reasons for such internal bureaucratic culture and behavior of the Bank? They are:
- Due to impediments to organizational learning;
- Due to institutional stickiness; and
- Due to inherent collective action problems.
Who seek to influence the Bank’s agendas and policies? They are:
- Increasing number of non-governmental organizations;
- Civil society organizations;
- Multinational corporations; and
- Epistemic communities of development scholars.
The result is a line-up of external demands aiming to result in conflicting signals as to the ultimate direction of the Bank’s policies and practices. This makes the organization a very dynamic versatile environment but not necessarily where (the direction) the desire and focus of the bank’s external political masters (high politics of the Bank reform). It is clear to renew the legitimacy, effectiveness, and relevance of the Bank as a fundamental change.
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