Rational choice: actors, preferences and power

Debates about the World Bank in political science frequently revolve around the choice of theoretically interesting actors. A review of recent empirical work suggests that the most important principals are the US president and the US Congress. Other countries have much less influence, and while non-governmental actors can play important roles at key junctures, they exercise their influence by lobbying the US Congress. Principal-agent problems in the Bank are addressed by selecting staff who internalize US policy preferences, but they can reemerge when US preferences shift and Bank procedures and incentives fail to adapt.