Reforming and Performing the Informal Economy: Constitutive Effects of the World Bank's Anti-informality Practices in Kosovo

The World Bank has for over a decade tried to formalize the informal economy in Kosovo. However, local journalists and businessmen among others provide an alternative understanding of informality that problematizes the World Bank’s view and actions. Against this backdrop, the article analyses the constitution and the constitutive effects of the World Bank’s anti-informality operations in Kosovo between 1999 and 2014. Drawing on Pierre Bourdieu’s power analytics, the article claims that the Bank’s agenda, and the economic ideas enacted through it, does structure and shape informal economic practices on the ground. Yet this structuring involves two forms of misrecognition. As a result, informality is paradoxically constituted (in novel ways) and reconstituted through the World Bank’s imposed anti-informality agenda. The article concludes with a discussion of how this underlines the need for policy solutions that depart from liberal peacebuilding’s subject–object distinction to form instead around an acknowledgement of informality as emergent and transforming throughout international interventions.     

The World Bank as Knowledge Bank: Analyzing the Limits of a Legitimate Global Knowledge Actor

The World Bank has always sold ideas, not just loans. Starting in 1996, then president James Wolfensohn rebranded the Bank by articulating a formal vision of a “Knowledge Bank”—a provider of state‐of‐the‐art expertise on development. After a number of internal changes and assessments, the Bank is acknowledging that it needs to be more humble, pluralistic, and practical. Why do some regard the Bank as a legitimate knowledge actor, whereas others contest that authority? We offer an analytical framework that can explain stakeholders' uneven recognition of the Bank's knowledge role. When stakeholders define knowledge as products, the Bank generally obtains recognition for the quality and quantity of the information it generates. This is the output dimension of legitimacy. On the other hand, when knowledge only counts as such to users who have been part of the process of creating it, the Bank finds itself with limited recognition.     

The interest group origins of the Bank of France

This paper contrasts different interpretations of the creation of the Bank of France. I argue that the Bank of France was the product of rent-seeking behavior rather than the pursuit of public interest, as is commonly supposed. I explain how the changing institutional constraints faced by both politicians and bankers can account for changes in France’s monetary constitution. The creation of the Bank in 1800 followed the fall of the Directory and the establishment of Napoléon’s autocratic regime. I argue that as parliamentarism and the separation of powers were weakened by Napoléon, the cost of establishing and maintaining a monopoly privilege in banking evaporated and the creation of the Bank of France became more likely.

     

The global institutionalization of microcredit

This article explains how microcredit as a policy idea has been institutionalized at the transnational level, and what role strategic actors play in the institutional change and governance of microcredit. Special attention is given to three dominant actors, the Grameen Bank, the World Bank, and SKS Microfinance. To explain the emergence of microcredit as a transnational policy idea this article explores the relations between theories of institutional change and Rosenau's concept of spheres of authority.     

The Creeping Politicisation of the World Bank: The Case of Corruption

This paper looks at the increasing politicisation of the World Bank through its work on corruption. Historically, the Bank's Articles of Agreement, which forbid it from involving itself in the politics of its recipient countries, have excluded work on corruption. In the 1990s, internal and external demands grew for the Bank to address the problem of corruption, despite earlier reticence. Much research done over the past decade, often commissioned by the Bank or done in-house, has worked to turn corruption into an economic and social issue, rather than a political one, in order to conduct anti-corruption work while evading accusations that it is violating this non-political mandate. Now this pretence is gradually slipping away and the Bank is becoming overtly political, despite its Articles and a lack of international consensus that this is the direction in which it should be heading.     

Political Institutions and Economic Performance: The Effects of Accountability and Obstacles to Policy Change

Numerous analyses have been conducted on how political institutions affect economic performance. In recent years the emphasis has been on a causal logic that emphasizes institutional obstacles to policy change, such as those presented by multiple veto points. This has especially been the case when it comes to the important question of how political institutions influence governments' responses to exogenous economic shocks. We make the case for a substantial broadening of focus and show that when it comes to a major type of exogenous shock, a forced exchange-rate devaluation, variations in the breadth of accountability of the chief executive are more robustly associated with the post-shock growth recovery than variations in obstacles to policy change. We first argue that the size of the winning coalition will be positively associated with growth recoveries following forced devaluations. We then use a newly developed measure of the size of the winning coalition to test our claim. Our statistical analysis is based on a study of the responses of 44 countries to forced exchange-rate devaluations in the late 1990s.     

International development institutions and national ­economic contexts: neo-liberalism encounters India’s indigenous political traditions

Drawing on the case of India, which since 1991 has been undergoing a far-reaching programme of market-oriented reform, this paper argues that the World Bank and other transnational development actors have been unable to adjust themselves ­sufficiently to indigenous ideological traditions that affect the sustainability of economic liberalization. While markets are becoming increasingly embedded at the level of institutions, they are not achieving what might be termed ‘ideological embeddedness’. The paper maps the ideological context facing market reformers in India by looking at the relationship between, on the one hand, the idea of swadeshi (an indigenous form of economic nationalism), and on the other, three competing forces in Indian politics. The paper concludes by arguing that it is the mutual antipathy among these political forces, rather than any fundamental incompatibility between swadeshi’s precepts and the embedded-market framework, that prevents organizations like the World Bank from adapting swadeshi as an indigenous basis for framing its approach to market embeddedness.     

Trustee strategies,politicization and de-delegation: The case of the European Central Bank

This article shows how the European Central Bank (ECB) reduced the risk of politicization and de facto de-delegation despite experiencing contestation. During the euro area crisis and the coronavirus emergency the ECB's monetary policy measures have been widely praised for their effectiveness. Even though the ECB is an independent trustee that cannot be easily sanctioned, it needs to engage with its principals to receive their political backing for common projects and in order to reaffirm its own centrality in governance. This article identifies different trustee strategies to reduce politicization and thereby to decrease the risk of de facto de-delegation: (i) dualism, (ii) voluntary self-restraint, and (iii) changing the yard stick. It concludes by showing that the ECB has expanded its monetary policy toolbox without triggering neither formal nor de facto de-delegation.     

The Clinton administration’s development and implementation of cybersecurity strategy (1993–2001)

The concept of an assault on the critical infrastructure of the United States is often referred to as a ‘Cyber Pearl Harbor’. This implies that such an attack would come as a surprise. By 2016, however, few could claim to be surprised by such an event. This paper explains how the Clinton administration addressed cybersecurity in the 1990s as computers became an everyday item. With the benefits of this era, however, came potentially devastating implications for national security as the Clinton administration was required to confront a form of politically motivated violence unlike any that had been seen before Cyberterrorism.     

Tracing leadership: the ECB’s ‘whatever it takes’ and Germany in the Ukraine crisis

Abstract

Political scientists face problems when assessing a leader’s impact: how can we know that a policy outcome or institutional change is caused by leadership? This article argues that in addition to relying on comparisons and counterfactuals, we need to trace the causal mechanisms by which leadership affects outcomes. Therefore, the article proposes a way to trace leadership and applies it to two cases of EU crisis management: the European Central Bank’s role in announcing Outright Monetary Transactions in the eurozone crisis, and Germany’s role in shaping the EU’s response to the Ukraine crisis. Systematic process-tracing shows that both actors provided leadership ‘by default’. However, while the ECB had to combine the provision of knowledge with unilateral action in order to overcome the eurozone crisis, Germany could use manifold bargaining-based strategies and thus became the EU’s de facto agenda setter and main representative in managing the Ukraine crisis.     

The Jenin Initiative: Counterinsurgency by Capacity Building

In late 2008, as negotiations between the Israelis and the Palestinians faltered, the US directed the Jenin Initiative on the ground in the West Bank. Designed to inspire confidence in Washington’s security-driven ‘West Bank First’ strategy, the Jenin Initiative married economic development to security sector reform under the Palestinian Authority. Drawing on the perspectives of those responsible for implementing the Jenin Initiative, this article reveals how counterinsurgency doctrine transplanted from the ‘war on terror’ shaped US interventions that built capacity in the Palestinian Authority. The Jenin Initiative exposes the extent of US intervention to create an effective apparatus of Palestinian self-policing to enhance – but not replace – that of the Israeli occupation.     

Korea's technological development

Abstract

Indigenous peoples’ rights, including the right to self-determination, are increasingly codified in international law and policy and disseminated globally by international organizations. These norms mark a profound change in the ideals of citizenship promoted by the international community, away from linguistically and institutionally homogenous citizenship in centralized states to group-differentiated citizenship in decentralized, multi-level and multi-lingual states that use local and regional autonomy for the accommodation of indigenous peoples. Essential to realizing these norms is the devolution of some degree of autonomy to sub-central state units substantially controlled by indigenous communities. Because the transfer of powers to indigenous peoples is crucial to their accommodation, protection and participation in modern states, and because decentralization programs are an important component of reform agendas in most developing countries, it is important to understand how these emerging norms are integrated into real-world decentralization processes.

This article analyzes the application of the World Bank's safeguards policy for indigenous peoples within the institution's support to decentralization reform in Cambodia. The analysis demonstrates that under certain circumstances, the policy not only fails to translate into effective protection but leads to outcomes diametrically opposed to its objectives. In its current design, Bank support to decentralization contributes to the marginalization of indigenous peoples in Cambodia and undermines the institutional, cultural and natural resources upon which their empowerment and participation depends. In environments in which full compliance might be unrealistic to accomplish by individual projects, safeguard obligations lead to a strategy on the part of Bank projects of avoiding geographical and policy areas that are likely to trigger the safeguards policy, in order to reduce projects’ vulnerability to non-compliance claims. The article discusses how more effective application of the safeguards policy might be achieved and how strategies for the empowerment of indigenous peoples can more effectively draw on decentralization frameworks.     

Making Sense of Greek Austerity

The process of approving a Greek drawing on funds provided by the international community is now familiar. There is concern about the prospect of securing an agreement between the International Monetary Fund (IMF), the European Union (EU), the European Central Bank (ECB), and Greece, which satisfies all parties. This paper suggests that all parties to the agreement have interests in an orderly resolution of the Greek crisis that keeps Greece in the Eurozone. Furthermore, it argues that disagreements and delay before eleventh‐hour agreements can best be explained politically. The paper first demonstrates how Greece, the IMF, and the EU each have a clear interest in finding an orderly solution to the Greek crisis that allows it to remain in the Eurozone. It then outlines the incremental nature of the package and its strategic benefit both for the European banking sector, and governments in Greece and the Eurozone more broadly.     

African states,bureaucratic culture and computer fixes

Our central argument in this article is that the introduction of computers in African states fails to produce the intended results. This is precisely because the trajectory of development of bureaucratic institutions in Africa has resulted in internal and external contexts that differ fundamentally from those of the Western states within which computing and information technology has been developed. This article explores the context in which computers were developed in Western industrialized societies to understand the circumstances that the technologies were designed to respond to and the bureaucratic culture that helped produce desired results. We then proceed to analyse the truncated nature of institution building in the colonial state, and how it structured the peculiar setting of the post‐colonial African state and dynamics surrounding the integration of the new information and communication technologies. We argue that the colonial state bequeathed to its post‐colonial successor three crucial characteristics that are of central importance to understanding why the introduction of computers does not produce anticipated improvements in public administration. These are the very limited technical capabilities of the bureaucracy; authoritarian decision‐making processes under the control of generalist administrators; and the predominance of patron–client relationships. Copyright © 2001 John Wiley & Sons. Ltd.     

China’s Coherence in International Economic Governance

This article analyzes China’s coherence in international economic governance. When and how is China challenging the rules and norms of the prevailing international economic order? Has China adopted the current rules and norms across the board, or is it proceeding in an ad hoc or piecemeal manner? How can its (in) coherence be explained? To address these questions, I compare China’s profile vis-à-vis three dimensions of the global economic order: trade, investment, and development aid. I argue that in international trade and investment, China has neither sought nor brought about significant change. China is however, offering an alternative to the Western norms that until now have dominated the global development aid regime. China’s establishment of the Asian Infrastructure Investment Bank (AIIB) is notable in this regard, though it is still soon to determine if the Chinese-led development bank will break with existing norms. The article then considers possible theoretical explanations for the variation in China’s behavior across the three areas.     

The World Bank's perspective on how to improve administration

The editor assesses the World Bank's World Development Report 1983 in which the World Bank reviews how to improve administration and management. In particular he questions the assumptions underlying the case made in the report for the market as a versatile instrument of administration.     

From doves to hawks: A spatial analysis of voting in the Monetary Policy Committee of the Bank of England

This article examines the making of monetary policy in the United Kingdom between 1997 and 2008 by analysing voting behaviour in the Bank of England's Monetary Policy Committee (MPC). It provides a new set of measures for the monetary policy preferences of individual MPC members by estimating a Bayesian item response model. The article demonstrates the usefulness of these measures by comparing the ideal points of outgoing MPC members with their successors and by looking at changes over time in the median ideal point on the MPC. The analysis indicates that the British Government has been able to move the position of the median voter on the MPC through its appointments to the Committee. This highlights the importance of central bank appointments for monetary policy.     

Lessons from NPAs crisis in Indian banks

Nonperforming assets (NPAs) crisis in Indian public sector banks is one of the biggest challenges before the current government in 2017. The finance ministry, Government of India, and the central bank, the Reserve Bank of India, are worried about the surging NPAs in Indian public sector banks because of their huge macroeconomic impact and systemic risk to the financial system. If not paid timely attention, it can hamper the economic and financial stability of the nation. Rising NPAs in Indian public sector banks are a result of bank specific, macroeconomic, and political factors. In order to control the surging NPAs in Indian public sector banks, the government and the Reserve Bank of India have implemented new crisis management framework which however is not immune to several challenges. This paper looks at NPAs crisis from the lens of crisis management, stakeholder's engagement, government relations, and issue management. Harris and Fleisher ( 2016 ) identify crisis management, stakeholder engagement, government relations, and issues management as important organizational activities that constitute part of public affairs. This paper follows a tripartite structure where it first investigates the causes of NPAs in Indian public sector banks. Second, it examines the crisis management framework developed by the policy makers and highlights the key challenges. Third, in light of these challenges, it makes recommendations to tackle the NPAs crisis in Indian public sector banks.     

China as an institution-builder: the case of the AIIB

As China is entering into the center stage of the world arena, it has become more proactive in regional and global institution-building. Globally, it has been actively involved in the G20 affairs and will be hosting the 2016 G20 Summit in Hangzhou. Regionally, it came up with a major initiative for a new institution, namely, the Asian Infrastructure Investment Bank (AIIB). This article aims to analyze the new institution's formation, goals and institutional arrangements as well as its implications.