Read e-book online Aid and Power - Vol 1: The World Bank and Policy Based PDF

By Jane Harrigan, Paul Mosley, John Toye

ISBN-10: 0415132096

ISBN-13: 9780415132091

While the most important reduction businesses made flows of reduction conditional on adjustments in coverage, they caused an intensive debate in improvement circles. Aid and Power has made essentially the most major and influential contributions to that discuss. This variation has been revised to take account of adjustments in the global financial institution itself and the extension of coverage dependent lending to the previously socialist economies of east and relevant Europe.

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Extra resources for Aid and Power - Vol 1: The World Bank and Policy Based Lending

Example text

But in either case, proposals for government interventions to protect the vulnerable during the process of stabilisation and adjustment fell on deaf ears. That whole agenda had to be politically relaunched by UNICEF and others in the mid-1980s, after being sunk without trace by the neo-liberals at the end of the 1970s. Such strong antipathy to the role of the state in economic development rested in part on nothing more intellectual than a populist gut prejudice. g. Lewis, 1966: 100; Faber and Seers, 1972).

By 1986, as Table 1. 5 shows, it had fallen back to onethird of its 1980 level, with new flows directed to countries like India which had remained creditworthy through the 1970s. But foreign aid was not able to expand to fill the financing gap created by falling levels of new bank lending. The new governments in the lending industrialised countries began cutting foreign aid, as an easy target in the campaign for greater fiscal tightness, so that the expansion of aid from other industrial countries such as Japan and Italy was necessary merely to keep the aggregate flows roughly constant.

The Japanese government was anxious to demonstrate that the hypergrowth experienced in the Far East since World War II was associated with a significant measure of state control over the economies of Taiwan, South Korea, and more recently also of Thailand and Indonesia, involving precisely the methods of performance-contingent state support commended in the OECF's Occasional Paper (Chang 1993; Wade, 1990; Amsden, 1989). The discrepancy between the historical record of the most successful developing countries and the Bank's advice to poor countries to continue along the path of liberalisation (in, for example, World Bank, 1994c: 184 and 192) was something which the Japanese government was extremely keen to expose to public scrutiny.

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Aid and Power - Vol 1: The World Bank and Policy Based Lending by Jane Harrigan, Paul Mosley, John Toye


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