IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/4670.html
   My bibliography  Save this paper

The World Bank's early reflections on development : a development institution or a bank?

Author

Listed:
  • Alacevich, Michele

Abstract

Until the late 1960s, the World Bank presented itself as an institution devoted to making sound and directly productive project loans. Yet, during its very early years, some discussions developed inside the Bank regarding the possibility of issuing different types of loans, namely (i) loans aimed at tackling social issues ("social loans"), and (ii) loans aimed at providing foreigncurrency to address disequilibria in the balance of payments ("impact loans"). This paper brings together historical analysis and theories of organization development to study the housing issue as a case in point. The analysis reveals that the Bank was unwilling to lend for housing programs not because these were not sound - in fact, they were - but because they were geared toward achieving social welfare objectives and were not directly linked to productive investment projects, such as dams, power stations, and railroads. This early decision had a significant impact on the subsequent development of the Bank's view of policy-making: it locked the institution into a particular lending pattern, and deprived it of important intellectual resources. It was not until the late 1960s that the Bank began to take social issues into consideration, rather late compared with other multilateral institutions.

Suggested Citation

  • Alacevich, Michele, 2008. "The World Bank's early reflections on development : a development institution or a bank?," Policy Research Working Paper Series 4670, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4670
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2008/07/17/000158349_20080717152619/Rendered/PDF/WPS4670.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Anonymous, 1953. "International Bank for Reconstruction and Development," International Organization, Cambridge University Press, vol. 7(3), pages 410-411, August.
    2. anonymous, 1974. "Working Papers," Management Science, INFORMS, vol. 21(3), pages 365-368, November.
    3. Anonymous, 1951. "International Bank for Reconstruction and Development," International Organization, Cambridge University Press, vol. 5(2), pages 368-370, May.
    4. Anonymous, 1950. "International Bank for Reconstruction and Development," International Organization, Cambridge University Press, vol. 4(3), pages 481-483, August.
    5. David, Paul A., 1994. "Why are institutions the 'carriers of history'?: Path dependence and the evolution of conventions, organizations and institutions," Structural Change and Economic Dynamics, Elsevier, vol. 5(2), pages 205-220, December.
    6. Currie, Lauchlin, 1978. "The objectives of development," World Development, Elsevier, vol. 6(1), pages 1-10, January.
    7. Anonymous, 1950. "International Bank for Reconstruction and Development," International Organization, Cambridge University Press, vol. 4(2), pages 315-317, May.
    8. Anonymous, 1953. "International Bank for Reconstruction and Development," International Organization, Cambridge University Press, vol. 7(4), pages 561-565, November.
    9. Hicks, Norman & Streeten, Paul, 1979. "Indicators of development: The search for a basic needs yardstick," World Development, Elsevier, vol. 7(6), pages 567-580, June.
    10. Anonymous, 1950. "International Bank for Reconstruction and Development," International Organization, Cambridge University Press, vol. 4(1), pages 128-130, February.
    11. Barber,William J., 2006. "Designs within Disorder," Cambridge Books, Cambridge University Press, number 9780521034319, January.
    12. Hicks, Norman L., 1982. "Sector priorities in meeting basic needs: some statistical evidence," World Development, Elsevier, vol. 10(6), pages 489-499, June.
    13. Javed Burki, Shahid & Ul Haq, Mahbub, 1981. "Meeting basic needs: An overview," World Development, Elsevier, vol. 9(2), pages 167-182, February.
    14. Anonymous, 1950. "International Bank for Reconstruction and Development," International Organization, Cambridge University Press, vol. 4(4), pages 673-675, November.
    15. Anonymous, 1953. "International Bank for Reconstruction and Development," International Organization, Cambridge University Press, vol. 7(2), pages 267-269, May.
    16. Anonymous, 1951. "International Bank for Reconstruction and Development," International Organization, Cambridge University Press, vol. 5(4), pages 784-788, November.
    17. Maier, Charles S., 1977. "The politics of productivity: foundations of American international economic policy after World War II," International Organization, Cambridge University Press, vol. 31(4), pages 607-633, October.
    18. Anonymous, 1951. "International Bank for Reconstruction and Development," International Organization, Cambridge University Press, vol. 5(3), pages 593-596, August.
    19. Anonymous, 1953. "International Bank for Reconstruction and Development," International Organization, Cambridge University Press, vol. 7(1), pages 134-137, February.
    20. Hicks, Norman L., 1979. "Growth vs basic needs: Is there a trade-off?," World Development, Elsevier, vol. 7(11-12), pages 985-994.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michele Alacevich, 2010. "Development Agency or Bank? Vision and Strategy of the World Bank in the 50’s and 60’s," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    2. Emanuele Felice & Amedeo Lepore, 2017. "State intervention and economic growth in Southern Italy: the rise and fall of the ‘Cassa per il Mezzogiorno’ (1950–1986)," Business History, Taylor & Francis Journals, vol. 59(3), pages 319-341, April.
    3. Ballinger, Roy A., 1971. "A History of Sugar Marketing," Agricultural Economic Reports 307418, United States Department of Agriculture, Economic Research Service.
    4. Ballinger, Roy A., 1978. "A History of Sugar Marketing Through 1974," Agricultural Economic Reports 307665, United States Department of Agriculture, Economic Research Service.
    5. Eric Gaisie, 2017. "Living standards in pre-independent Ghana: evidence from household budgets," HHB Working Papers Series 7, The Historical Household Budgets Project.
    6. María Dolores Espino, 2000. "Cuban Tourism During the Special Period," Annual Proceedings, The Association for the Study of the Cuban Economy, vol. 10.
    7. Steele, J. G. & Ramdin, H. N., 1971. "Soil Resources Of Guyana," 9th Annual Meeting, 1971, Georgetown, Guyana 263363, Caribbean Food Crops Society.
    8. World Bank, 2004. "Colombia : Land Policy in Transition," World Bank Publications - Reports 14351, The World Bank Group.
    9. Ross, E.B., 2003. "Modernisation, clearance and the continuum of violence in Colombia," ISS Working Papers - General Series 19142, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    10. Molle, Francois, 2007. "Thailand’s ‘free water’: rationale for a water charge and policy shifts," Book Chapters,, International Water Management Institute.
    11. Raffaella Castagnini & Klaus Deininger & Maria A. Gonzalez, 2004. "Comparing land reform and land markets in colombia: impacts on equity and efficiency," Policy Research Working Paper Series 3258, The World Bank.
    12. Molle, Francois, 2007. "Thailand\u2019s \u2018free water\u2019: rationale for a water charge and policy shifts," IWMI Books, Reports H040604, International Water Management Institute.
    13. Michele Alacevich, 2007. "The World Bank's Early Reflection on Development: a Development Institution or a Bank?," Development Working Papers 221, Centro Studi Luca d'Agliano, University of Milano.
    14. Jay Mandle, 1970. "The decline in mortality in British Guiana, 1911-1960," Demography, Springer;Population Association of America (PAA), vol. 7(3), pages 301-315, August.
    15. Archibald R. M. Ritter, 2014. "Does Cuba Have a Future in Manufacturing?," Annual Proceedings, The Association for the Study of the Cuban Economy, vol. 24.
    16. Juliana Jaramillo-Echeverri & Adolfo Meisel-Roca & María Teresa Ramírez-Giraldo, 2019. "More than 100 years of improvements in living standards: the case of Colombia," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 13(3), pages 323-366, September.
    17. Albert Berry, 2002. "¿Colombia encontró por fin una reforma agraria que funcione?," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 4(6), pages 24-70, January-J.
    18. Tatiana Maritza Mora & Juan Carlos Munoz, 2008. "Concentración de la propiedad de la tierra y producto agrícola en Antioquia. 1995-2004," Revista Ecos de Economía, Universidad EAFIT, March.
    19. Sanderson, Agnes G., 1963. "British Guiana: Its Agriculture and Trade," Miscellaneous Publications 316469, United States Department of Agriculture, Economic Research Service.
    20. Aurora Gómez-Galvarriato, 2007. "The Political Economy of Protectionism: The Mexican Textile Industry, 1900-1950," NBER Chapters, in: The Decline of Latin American Economies: Growth, Institutions, and Crises, pages 363-406, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Banks&Banking Reform; Access to Finance; Corporate Law; Public Sector Corruption&Anticorruption Measures;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:4670. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.