Diplomacy and Loans: the Foreign Office,Economic Reconstruction,and Security in South-Eastern Europe in the 1920s

This article embarks on the discussion of tensions between political and finanical strands of British policy towards two smaller states in South-Eastern Europe – Hungary and Bulgaria – during the first decade after the First World War. The two case studies examine the way in which conflicting agendas of the Foreign Office and the Treasury affected each other in connexion with reconstruction loans given to Hungary and Bulgaria. They touch on that part of foreign policy where both the Foreign Office and the Treasury were concerned, and where economic reconstruction, promoted by the latter, clashed with what were primarily security considerations, pursued by the former. The role of London as a financial centre of the world and the key position of the Bank of England in carrying out collaborative enterprises of great international banks provided the Foreign Office with a valuable lever to bring pressure to bear on the smaller South-Eastern European Countries and force them conform to Whitehall's expectations. However, the opportunities this offered invariably went begging due to the Treasury's unfaltering resolve to proceed with its own schemes and its refusal to cooperate with the Foreign Office and allow it to achieve its political goals.     

Misaligned Social Policy? Explaining the Origins and Limitations of Cash Transfers in Sudan

This article examines whether the transitional government in the wake of the December 2018 Sudanese revolution succeeded in realigning social policy with public demands. The article focuses on the evolution of cash transfer programmes from the 2012 cash programme under the Ingaz regime to the transitional government's programme 2021. While the recent programme was popularly viewed as a ‘World Bank programme’, its originators were in fact Sudanese professionals. Similarly, the Ingaz regime experimented with cash transfers before seeking out World Bank technical support. In this sense, cash transfers cannot be seen as an external imposition, as domestic actors have favoured them across different regimes. Yet, their appeal may still reflect the ‘choicelessness’ that Thandika Mkandawire associated with structural adjustment, as in both cases cash transfers were introduced as part of broader economic reform. Sudan's case is distinct in the sense that its domestic policy makers did not begrudgingly accept cash transfers but were enthusiastic instigators of them. The article traces the origins of this enthusiasm within Sudan's recent political history and explores the way in which alignment with international mainstream policy making locks Sudan into a bind. The country urgently needs to reverse the fragmentation of social policy along geographic and racial lines, yet these programmes do little to overcome such regional and racial inequalities. Thus, even after a popular revolution displaced the prevailing political settlement and called for radical change, policy makers remain misaligned to public demands.     

The World Bank's ‘Assault on Poverty’ as a Political Question (1968–81)

This article analyses the actions of the World Bank between 1968 and 1981, under the presidency of Robert McNamara, in the context of the Cold War and the directions of US foreign aid policy. It discusses the reasons for, and the means by which the World Bank led, the ‘assault on poverty’, with an emphasis on rural poverty. It problematizes the theory which supported this initiative, analysing its operationalization in the countryside; it discusses the principal format that it assumed, the reasons which propelled it, the political calculation which guided it, the interests at play, and the results that were reached. Finally, the article argues that the ‘assault on poverty’ slogan expresses the disposition and the willingness of the World Bank to intervene in domestic questions, aiming to alter, in a selective and focused manner, the condition of particular social groups in client countries, rather than improving the general conditions of economies. This in turn demanded the strengthening of its advisory, technical assistance and economic research functions. If McNamara's policy of fighting poverty can be considered a failure in economic and social terms (a diagnosis widely accepted in the literature), this article argues that, politically, it was successful by constructing the foundations for the neoliberal-type focused social policies that were in vogue in the following decades.     

Science and Technology at the World Bank, 1968–83

The World Bank was an important supporter of science and technology during the period 1968–83. President Robert McNamara’s poverty oriented strategy created challenges that led to technological research, technology assessment and technological innovation in agriculture, forestry, civil works construction, sanitation, and many other fields of development. The Bank also pioneered in financing governmental mechanisms to stimulate industrial innovation. On the other hand, its support to science and technology was limited by lack of an overall policy and systematic support from top management, as well as by cumbersome procedures designed for large infrastructural projects. Even so, its financial independence, its strong leadership, its experienced and non‐political technical staff, and its ability to scale up successful innovations through its project lending, made it an important promoter of appropriate technology in the developing world.     

Thinking about the World Bank’s “accordion” geography of financial globalization

Two “flagship” World Bank reports, entitled The Long March—A Reform Agenda for Latin America and the Caribbean In The Next Decade (1997) and the World Development Report, 1999–2000 (2000), are the subject of this paper. Both publications attempt to come to terms with the policy and practice of structural adjustment in the context of a new geography of global finance. This paper argues that the geographical imagination employed in both World Bank reports is the product of a dominant statist geographical imagination that struggles to explain contemporary developments in the geography of money. The paper starts with a brief discussion of the Mexican peso and debt crisis, and the World Bank’s practice of structural adjustment. Through an interrogation of both World Bank papers, thought is then given to the purchase of territorialized state-based mappings of the global economy. The paper wraps up with a brief conclusion concerning the explanatory salience of scale.

Internationally mobile capital is here to stay. Growing trade links, new communication technologies, and increasingly sophisticated financial products are making national borders more porous to financial flows. The challenge facing policymakers in developing countries is how to navigate through this financially integrating world (World Development Report 1999-2000, 2000: 85).

[W]hereas the horizons of the world of money and finance are global and deterritorialized, the political imagination seems wedded to territorialism and the borders of the nation state (Leyshon &Thrift, 1997: 290).

     

The governance bank

While the cancellation of a number of high‐profile loans because of corruption concerns has made headline news, the World Bank's principal approach to poorly governed countries is lending in order to support reforms. Although designed to be an apolitical technocratic development financier, increasingly the Bank has focused its attention and resources on promoting good governance in its borrowers. Bank lawyers and presidents have attempted to hive of apolitical aspects of governance by arguing a distinction between the rule of law and the political character of government, but this distinction is illusory. The Bank's inability to address the political embeddedness of poor governance in neo‐patrimonial governments skews risk assessments and impedes the formation of effective strategies. Reform of the charter would not eliminate the Bank's bureaucratic and political constraints.     

Mobile Adaptation and Sticky Experiments: Circulating Best Practices and Lessons Learned in Climate Change Adaptation

This article engages with the recent geographical literature on policy mobilities in order to examine how the World Bank mobilizes climate change adaptation 'best practices'. Drawing from the relational case study of the Kiribati Adaptation Project and the Community Resilience to Climate Change and Disaster Risk in Solomon Islands Project, the article explores the complex and intensive work required for mobilizing lessons and practices. The analytical work required in building the Kiribati Adaptation Project as a World Bank success story and policy model worthy of replication in new sites is demonstrated. However, heeding calls within the policy mobilities literature to avoid fetishizing mobility and attending to the contradictions between global flows and local institutional specificity, the article finds limited evidence of replication in noted sites of emulation. Instead, there is compulsive citation, publication, and circulation of experiences and successes within the World Bank, which operates to build internal and external legitimacy.     

Limits to the Washington Consensus: Boundary struggles and China's transition economy

This paper explores the interconnected normative and geopolitical-economic tensions between the Washington Consensus and the Chinese state through an analysis of reform discourses and practices at the World Bank. Frequently framed as opposing visions and templates of development, the World Bank and the Chinese state have engaged in a protracted relationship of mutually-informing exchanges of economic expertise, technical assistance, and policy formulation, evolving significantly since China's ‘opening up’ in 1978. I trace these shifting relations through an interpretive strategy inspired by Nancy Fraser's concept of boundary struggles, focusing on how the World Bank has challenged, affirmed, and affected China's institutionalized division between polity and economy. Through a new periodization of the World Bank/China nexus, this paper shows how transformations in geopolitical-economic relations condition the normative construction, representation, and reception of ‘economic models’. It also challenges antipodean conceptions of the ‘free-market’ Washington Consensus and ‘state-capitalist’ China through demonstrating the qualitative character of their state/market articulations.     

Rethinking the Emerging Post‐Washington Consensus

The objective of this article is to provide a critical assessment of the emerging Post‐Washington Consensus (PWC), as the new influential vision in the development debate. The authors begin by tracing the main record of the Washington Consensus, the set of neoliberal economic policies propagated largely by key Bretton Woods institutions like the World Bank and the IMF, that penetrated into the economic policy agendas of many developing countries from the late 1970s onwards. They then outline the main tenets of the PWC, emerging from the shortcomings of that record and the reaction it created in the political realm. The authors accept that the PWC, in so far as it influences the actual practice of key Bretton Woods institutions, provides an improvement over the Washington Consensus. Yet, at the same time, they draw attention to the failure of the PWC, as reflected in current policy practice, to provide a sufficiently broad framework for dealing with key and pressing development issues such as income distribution, poverty and self‐sustained growth.     

Conceptualizing Greek cultural policy: the non‐democratization of public culture

This paper concentrates on several of the most significant moments of Greek cultural policy since World War II, together with its key concepts. It traces the cultural policy of the country, its main changes and its relationship with politics through a socio‐cultural analysis and a look at the political and cultural events which occurred. The concepts of national identity, hegemony, civilizing mission, democratization, and cultural democracy are applicable in this framework. Despite various attempts at reforms, the country's cultural policy could be characterized as ‘path dependent’; it connected unwaveringly to its two main objectives: heritage and the arts.     

Italy and the World Bank: The European Foundations of Development Lending, 1947–51

Foreign financial assistance for economic development and the discipline of development economics have traditionally been associated with US Cold War policy toward the Third World. This article, however, suggests that these practices were also shaped by the experiences of foreign aid for European reconstruction after the Second World War. The article traces loan negotiations between the World Bank and the Italian government, and argues that this process played a substantial role in shaping not only the World Bank's lending policies, but also the way its staff understood the institution's mission. The article emphasises Europe's significance as a site in the early history of development, suggesting new ways of understanding the evolution of development ideas, practices, and institutions after 1951.     

Urban heritage ‘space’ under neoliberal development: a tale of a Jordanian plaza

What happens when urban heritage spaces within developing countries, such as Jordan, are subject to touristic development funded by international bodies, such as the World Bank? This question is explored theoretically and practically by considering a popular local plaza in the secondary Jordanian city of Jerash that has been subject to three tourism development projects funded by the World Bank. The study, which incorporates and critiques the discourse of neoliberalism within urban heritage development studies, seeks to analyse the World Bank projects and, more specifically, how they have defined, approached and produced outcomes in the Jerash plaza and its context. In so doing, the study triangulates the analysis with accounts by local respondents that identify major drawbacks in the World Bank approach, particularly its emphasis on conventional ‘readings’ of urban space that highlight universal values and histories, while neglecting and marginalising local values and understandings. The triangulation offers attentive ‘readings’ of the plaza as a place understood and experienced by a people. The challenge is to break with the neoliberal paradigm that dominates urban heritage development programmes (and their associated West–East dualisms and top-down approaches) by presenting local sociocultural and economic contexts as assets to enrich development projects, rather than obstacles to be ‘fixed’ and ‘fitted’ for tourism.     

On the Limits of Liberalism in Participatory Environmental Governance: Conflict and Conservation in Ukraine's Danube Delta

Participatory management techniques are widely promoted in environmental and protected area governance as a means of preventing and mitigating conflict. The World Bank project that created Ukraine's Danube Biosphere Reserve included such ‘community participation’ components. The Reserve, however, has been involved in conflicts and scandals in which rumour, denunciation and prayer have played a prominent part. The cases described in this article demonstrate that the way conflict is escalated or mitigated differs according to foundational assumptions about what ‘the political’ is and what counts as ‘politics’. The contrasting forms of politics at work in the Danube Delta help to explain why a 2005 World Bank assessment report could only see failure in the Reserve's implementation of participatory management, and why liberal participatory management approaches may founder when introduced in settings where relationships are based on non‐liberal political ontologies. The author argues that environmental management needs to be rethought in ways that take ontological differences seriously rather than assuming the universality of liberal assumptions about the individual, the political and politics.     

The contradictory logic of global ecosystem services markets

Commodification and transnational trading of ecosystem services is the most ambitious iteration yet of the strategy of ‘selling nature to save it’. The World Bank and UN agencies contend that global carbon markets can slow climate change while generating resources for development. Consonant with ‘inclusionary’ versions of neoliberal development policy, advocates assert that international payment for ecosystem services (PES) projects, financed by carbon-offset sales and biodiversity banking, can benefit the poor. However, the World Bank also warns that a focus on poverty reduction can undermine efficiency in conservation spending. The experience of ten years of PES illustrates how, in practice, market-efficiency criteria clash directly with poverty-reduction priorities. Nevertheless, the premises of market-based PES are being extrapolated as a model for global REDD programmes financed by carbon-offset trading. This article argues that the contradiction between development and conservation observed in PES is inevitable in projects framed by the asocial logic of neoclassical economics. Application in international conservation policy of the market model, in which profit incentives depend upon differential opportunity costs, will entail a net upward redistribution of wealth from poorer to wealthier classes and from rural regions to distant centres of capital accumulation, mainly in the global North.     

The environment becomes a political issue. Highlights of the Brundtland Commission Report

The Report of the Brundtland Commission (World Commission on Environment and Development) has been released by the UN. The Report points out that environmental survival requires development and development is only possible if the resources of the global environment are conserved. Although the UN and the World Bank must make commitments to development, each nation must devise its own strategy because development is inextricably linked to political, economic, and social factors such as poverty, overpopulation and the status of women. The Report makes 3 specific recommendations: 1) An independent body should be set up to assess global risks; 2) A universal declaration on environment and development should be made and followed by a convention; and 3) The UN General Assembly should set up a UN Program on Sustainable Development. The highest priority should be given to finding alternatives to nuclear energy as well as making the use of nuclear energy safer. Other major environmental problems include desertification, acid rain, the "greenhouse effect" and its impact on global climate and sea levels, and the destruction of the ozone layer with concomitant increase in cancer.     

Brave New Words? A Critique of Stiglitz’s World Bank Rethink

While in the position of Chief Economist of the World Bank, Joseph Stiglitz produced a string of papers, one of which proposed moving beyond the ‘Washington consensus’ to a ‘new development paradigm’, which he hoped the World Bank would espouse. This article offers a critique of that paper and the premises underlying any attempt to reposition an international banking agency. In particular, it focuses on Stiglitz’s attempt to jettison ‘conditionality’ and his argument that developmental assistance should seek to foster socio‐economic transformation and not be about ‘projects’. It also considers the ramifications of the call to make the World Bank ‘the knowledge bank’. Finally, it highlights what is missing from the proposed paradigm, bearing in mind the World Bank’s new ‘holistic development framework’.     

Book Reviews

Book reviewed in this article: C. George Kahama, T.L. Maliyamkono and Stuart Wells, The Challenge for Tanzania's Economy John Sender and Sheila Smith, The Development of Capitalism in Africa Ted J. Davis (ed.) Development of Rainfed Agriculture under Arid and Semi-arid Conditions. Proceedings of the Sixth Agricultural Sector Symposium Jan Hesselberg, The Third World in Transition: The Case of the Peasantry in Botswana Samir Radwan and Eddy Lee, Agrarian Change in Egypt: An Anatomy of Rural Poverty. A study prepared by the International Labour Office within the framework of the World Employment Programme. Martin Fransman, Technology and Economic Development. Sudha V. Rao, Education and Rural Development. J.P. Lewis and V. Kallab (eds), Development Strategies Reconsidered. The World Bank, Antigua and Barbuda: Economic Report. The World Bank, Dominica: Priorities and Prospects for Development, The World Bank, Grenada: Economic Report The World Bank, St. Christopher and Nevis: Economic Report The World Bank, St. Lucia: Economic Performance and Prospects. The World Bank, St. Vincent and the Grenadines: Economic Situation and Selected Development Issues     

The Contradictions of Pro‐poor Participation and Empowerment: The World Bank in East Africa

Participatory approaches remain central to development practice and the World Bank continues to espouse them with the promise to make its aid more pro‐poor. Yet participation's (in)effectiveness has become the focus of renewed, polarizing debates, and assessments of the form and function of the World Bank's participatory paradigm are still contested and unresolved. Through extensive field data collected in East Africa, this article seeks to move the debate forward. It presents three interrelated arguments: (1) the World Bank's participatory approach remains largely circumscribed by a Post‐Washington Consensus neoliberalism; (2) the approach, nonetheless, pro‐actively supports pro‐poor gains, and creates space for more alternative initiatives; (3) however, its effectiveness in fostering pro‐poor empowerment is undermined by deep inequalities and political economy dynamics on the ground. Two implications are discussed, which challenge conventional wisdom. First, the World Bank's approach could be seen as a hierarchical system of elements in which certain aspects, but not others, are insulated from popular deliberation. Second, participatory development should be (re)imagined as an open‐ended process rooted in the politicization of inequality and embedded in the dynamics of capitalist development, which also points to the critical role of a developmental state.