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.     

Information,power, and location: World Bank staff decentralization and aid project success

Using data on World Bank staff identity and field placement, this article examines the relationship between staff presence in recipient countries and aid project performance. I find that merely placing World Bank staff in developing countries has little effect on the success of development projects. Greater field decision rights are, however, associated with differential project performance. In the most fragile states, the presence of senior personnel (World Bank Country Directors) is associated with greater project success after the “Strategic Compact” increased Country Directors' power. However—consistent with a bargaining model in which greater World Bank authority is in tension with recipient country direction of projects—as countries become less fragile, the net effect of the presence of Country Directors becomes negative. The impact of World Bank staff decentralization is mixed and appears to be driven primarily by the power of senior personnel in the field, not the ability of field staff to gather local information.     

Institutional development in World Bank projects: Analytical approaches and intervention designs

This article examines a random sample of World Bank projects in order to identify the methods of institutional analysis (IA) and resulting institutional development (ID) strategies employed. The findings confirm impressionistic data which indicate that IA in World Bank projects is highly standardized, and concentrates on factors internal to the organization at the expense of external environmental factors, particularly as these are reflected in the needs of stakeholders and customers. ID is an integral part of most Bank projects, and the trend is shown to be towards increasing attention to ID. The nature of ID in World Bank projects reflects the inward orientation of IA, with strong emphasis given to training and development as a standard solution. It is concluded that IA and ID which are broader in scope will improve project design and impact.     

Efficiency,equity and girls' education

This article analyses World Bank strategies for education in the context of gender equity. Developing countries face the challenge of expanding education with limited resources. At the same time, promoting gender equity is vital to achieving basic development goals. Appropriate governance strategies are needed to provide education in a way that is cost‐effective and inclusive. Privatisation, decentralisation and citizen participation are three strategies that are promoted by the World Bank to control costs and improve transparency in education. Intended to promote efficiency, these strategies can harm equity. This study compares World Bank strategies to proven effective programs in girls' education. Empirical analysis reveals that while many World Bank projects include effective strategies for girls' education, governance reforms generally do not promote awareness of gender. Implications for expansion of girls' education are discussed. Copyright © 2006 John Wiley & Sons Ltd.     

Ecological socialism and human needs∗

The proposed Sardar Sarovar Project (SSP) is the keystone of India's Narmada Valley Project, consisting of 30 large, 130 medium, and 3000 small dams. Backed by the Indian government and the World Bank (the tatter to the tune of $450 million in loans), the SSP has generated unprecedented opposition from farmers and others whose lands would be submerged by the project, as well as from many Indian environmentalists and environmental and human rights groups around the world. In 1990, under tremendous pressure, former World Bank President Barber Co noble called for the Bank to make an independent review of the project. The Team's Report of the Independent Review, which evaluated the resettlement and environmental impacts of the SSPt backed up the criticisms of the projecfs opponents. One of India's best known engineers, CNS Editorial Consultant KM. Datye, his associates, and other scientists working on sustainable development alternatives have produced a wealth of critical studies of large dam projects including the SSP project in India. Their conclusion is that there are technical alternatives to the project which better serve the interests of democratic control of water and energy resources, economic and social equity, and economic efficiency.     

The Politics of Governance Ratings

ABSTRACT

Some international organizations, and most prominently the World Bank, play a leading role in the supply of cross-country governance ratings. The paper draws on interviews of World Bank staff to understand why the World Bank produces cross-country comparable indicators and to bring to light the current controversies within the World Bank about existing indicators and future work on governance indicators. It also attempts to explain why so many external users rely on the Worldwide Governance Indicators, despite the limitations of these indicators and the large number of more meaningful, alternative indicators available. It argues that both robust and meaningful indicators and more qualitative research are necessary to give better reform advice to developing countries.     

Do the IMF and the World Bank influence voting in?the?UN General Assembly?

Using panel data for 188 countries over the 1970–2008 period, this paper analyzes empirically the influence of the IMF and the World Bank on voting patterns in the UN General Assembly. Countries receiving adjustment projects and larger non-concessional loans from the World Bank vote more frequently in line with the average G7 country. The same is true for countries obtaining non-concessional IMF programs. Regarding voting coincidence with the United States, World Bank non-concessional loans have a significant impact, while IMF loans do not. This overall pattern of results is robust to the choice of control variables and method of estimation.     

Governmental policy preferences and foreign capital allocation: The case of China

This paper compares the determination of foreign direct investment and World Bank loans in China, with a focus on the role of its government. The statistical analysis reveals that World Bank loans responded sensitively to the major regional policy changes since the mid-1990s, but foreign direct investment did not. These findings pose an analytic challenge to the “strong” version of the state-centered approaches to the politics of economic development represented by the developmental state literature. However, they lend support for a “weak” version of the state-centered approaches developed by American political scientists Stephen Krasner and Theda Skocpol. He has taught comparative and international politics in Nankai University, China, Kent State University, and Walsh University. He is currently working on his dissertation about the political economy of foreign aid in China. The author wishes to thank Dr. Dennis Hart and Dr. Steven Hook and the three anonymous reviewers for their helpful comments on early versions of this paper. The author also wishes to thank Brian Juliao for his linguistic help.     

Sector Differences in Employee’s Perceived Importance of Income and Job Security: Can These be Found Across the Contexts of Countries,Cultures, and Occupations?

Most empirical research has shown that people working in the public sector perceive job security as more important than people working in the private sector, while the inverse is the case for job income. However, it is not known if these relationships hold globally while controlling for occupation and national context. We combine ISSP data from respondents in 25 countries with Hofstede’s cultural dimensions and World Bank data to examine whether the previous generally accepted claims hold while taking into account workers’ occupation, as well as national, cultural, and economic conditions. We find evidence that even when taking into account all these factors, government workers place a higher value on job security than private workers, but contrary to the generally accepted claim, we find no statistically significant difference between government and private workers in their high-income motives when taking the occupation and national context into the models.     

Pleasing the Principal: U.S. Influence in World Bank Policymaking

How do policies in international organizations reflect the preferences of powerful institutional stakeholders? Using an underutilized data set on the conditions associated with World Bank loans, we find that borrower countries that vote with the United States at the United Nations are required to enact fewer domestic policy reforms, and on fewer and softer issue areas. Though U.S. preferences permeate World Bank decision making, we do not find evidence that borrower countries trade favors in exchange for active U.S. intervention on their behalf. Instead, we propose that U.S. influence operates indirectly when World Bank staff—consciously or unconsciously—design programs that are compatible with U.S. preferences. Our study provides novel evidence of World Bank conditionality and shows that politicized policies can result even from autonomous bureaucracies.     

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.     

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.     

Book Reviews

Books reviewed:
Managing Government Expenditure. By Salavatore Schiavo-Campo and Daniel Tommasi, Washington, D.C.: Asian Development Bank, 1999.
Public Expenditure Management Handbook,Washington, D.C.. The International Bank for Reconstruction and Development/The World Bank.     

THE OPERATIONAL DIMENSIONS OF RESULTS‐BASED FINANCING

As part of a growing focus on the effectiveness of development assistance from the World Bank and other agencies, new efforts are being made to relate development finance more closely to outcomes achieved rather than to inputs used, through the results‐based financing approach. We provide a framework for analyzing the operational dimensions of results‐based financing, including the conditions that suit this approach, and how best to define, measure, and report results. We review some of the early World Bank experience with this approach. Noting that this approach is as yet not fully tested, we suggest evaluative issues for future research while highlighting strengths and challenges in the range of techniques adopted so far. Copyright © 2014 John Wiley & Sons, Ltd.     

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.     

Creating an enabling environment for housing: Recent reforms in Mexico

Abstract

A recent World Bank policy statement on housing advocates the reform of government policies, institutions, and regulations to enable housing markets to work more efficiently. The policy statement identifies several instruments that governments can use to address housing market constraints, and to improve the performance of the housing sector as a whole, while paying particular attention to the needs of the poor.

In recent years, the government of Mexico has employed many of the enabling instruments described in the World Bank's housing policy statement. This article reviews the role of housing in the Mexican economy and the major reforms that the Mexican government has implemented to improve the operation of the housing market so that private lenders and home builders can play an expanded role in addressing the country's housing needs. The World Bank has supported the government's reform program, and since 1985 it has lent more than $1.2 billion to Mexico for low‐income housing projects.     

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.     

Abstracts section

The theme of poverty eradication is now again at the top of the development policy agenda. In November 2000 the UK Department for International Development (DfID) published an important White Paper on International Development with the title Eliminating world poverty: a challenge for the 21st century. The World Bank World Development Report for 2000/2001 also takes poverty as its theme with the title Attacking poverty. It is interesting to note that the World Bank has bracketed the decade of the 1990s with the 1990 World Development Report simply entitled Poverty. After many conflicting theories of economic development, the basic problem of poverty in developing countries is now being addressed in a much more holistic way, as is exemplified in the following articles. It should be noted that two of these act as introductory articles to a special issue of a journal on this topic. The article by Lustig and Stern introduces the December 2000 issue of Finance and Development whose overall title is ‘How we can help the poor’ and the article by Baulch and Hoddinott introduces the August 2000 issue of the Journal of Development Studies entitled ‘Economic mobility and poverty dynamics in developing countries’. These special issues contain articles on poverty in addition to the ones abstracted here. Copyright © 2001 John Wiley & Sons, Ltd.     

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.