Beyond the World Bank Agenda: An Institutional Approach to Development

353 Pages·2008·1.54 MB·English

by  Howard Stein

Beyond the World Bank Agenda

Beyond the World Bank Agenda
An Institutional Approach to Development
howard stein
the university of chicago press chicago and london
howard stein is a professor at the University of Michigan’s Center for Afroamerican and
African Studies.
The University of Chicago Press, Chicago 60637
The University of Chicago Press, Ltd., London
© 2008 by The University of Chicago
All rights reserved. Published 2008
Printed in the United States of America
1716151413121110 09 08 12 3 4 5
isbn-13: 978-0-226-77167-0 (cloth)
isbn-10: 0-226-77167-9 (cloth)
Library of Congress Cataloging-in-Publication Data
Stein, Howard, 1952–
Beyond the World Bank agenda : an institutional approach to development / Howard
Stein.
p. cm.
Includes bibliographical references and index.
isbn-13: 978-0-226-77167-0 (cloth : alk. paper)
isbn-10: 0-226-77167-9 (cloth : alk. paper) 1. World Bank. 2. Economic
development—Developing countries. 3. Institutional economics. I. Title.
hg3881.5 .w57S74 2008
338.9009172'4—dc22
2007049302
¥  The paper used in this publication meets the minimum requirements of the American
National Standard for Information Sciences—Permanence of Paper for Printed Library
Materials, ansi z39.48-1992.
to alisa, joshua, and daniel

Contents
List of Illustrations ix
Abbreviations xi
Preface xv
Acknowledgments xvii
I. Reflections on the History of the World Bank Agenda
chapter 1. The Ascendancy of Economics in the World Bank,
1944–1979: From Infrastructure to Structural
Adjustment 3
chapter 2. From Structural Adjustment to “Poverty Reduction”:
Adjustment to the Crisis and the Crisis of Adjustment
after 1980 25
II. Economic Theory and the World Bank Agenda:
A Critical Evaluation
chapter 3. Economic Theory and Orthodox Reform:
Critical Reflections on Structural Adjustment 55
chapter 4. Institutions and the “Missing Link” in the World Bank’s
Strategy: Toward a Critique 85
III. Beyond the World Bank Agenda:
An Institutional Approach to Development
chapter 5. Building on Lost Foundations: The Institutional Matrix
and Socioeconomic Development 111
viii contents
chapter 6. State Formation as an Institutional Phenomenon 146
chapter 7. An Institutional Approach to Financial Development 173
chapter 8. Transcending Neoliberal Health Policies 207
chapter 9. Conclusion: Beyond the World Bank Agenda 249
Notes 267
Bibliography 301
Index 327
List of Illustrations
Figures
Figure 5.1 Myrdal’s framework: Circular causation and
development / 120
Figure 5.2 The institutional matrix: Circular causation and
development / 143
Tables
Table 1.1 U.S. voting shares in the World Bank, 1950–2007 / 8
Table 1.2 World Bank lending by sector / 11
Table 2.1 Net transfers by the World Bank and the IMF to
sub-Saharan Africa / 34
Table 2.2 World Bank adjustment lending by region / 36
Table 3.1 Economic indicators for Africa / 71
Table 3.2 Simple descriptive statistics for GDP growth in Sudan,
1960–2000 / 72
Table 3.3 World Bank studies of program and nonprogram
countries / 73
Table 4.1 Summary of NIE and its influence on the World Bank / 91
Table 5.1 Myrdal’s social system matrix / 118
Table 5.2 Six types of organizational theory / 132
Table 5.3 Components of the institutional matrix / 141
Table 7.1 Financial development and the institutional matrix / 194–95
Table 8.1 Systemic and nonsystemic objectives in
HNP projects / 224