The World Bank's four-item checklist blocked loans it never proved mattered
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The World Bank's four-item checklist blocked loans it never proved mattered
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The World Bank's four-item checklist blocked loans it never proved mattered
This episode explores the World Bank's "Governance and Development" report from 1992, which introduced a four-item checklist as a prerequisite for economic growth. It examines the contradiction between this framework and the actual development paths of various countries, raising questions about the checklist's true impact.
Date: 1992
Institution: World Bank
Report Title: Governance and Development
Criteria: Public sector management, accountability, legal framework for development, transparency and information
Economist: Dani Rodrik
- The World Bank's 1992 report outlined four specific elements as essential for sound economic policy.
- These criteria were presented as prerequisites for development, not mere suggestions.
- The framework's logic suggested that fixing issues like corruption and lack of rule of law would lead to economic development.
- Historically, no country in the postwar era developed by following the prescribed sequence of the checklist.
- In 1996, the International Monetary Fund made governance compliance a condition for accessing loans.
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