Title: World Bank reforms : New strategy, old ideology
Author: Viorica Viadica
Year: 2005
Keywords: N/A
Theme: Post-development
Advisor(s): Thitinan Pongsudhirak, Advisor, Prudhisan Jumbala, advisor
The full thesis available here.
Abstract: Amid various efforts to reform its policies, the World Bank (WB) announced more than five years ago a new policy framework for developing countries known as Poverty Reduction Strategy Papers (PRSP). Deriving form the Comprehensive Development Framework (CDF), publicized a year earlier, and in tune with the Millennium Development Goals (MDGs), launched by the UN system, the new approach placed the concept of poverty reduction at the core of development paradigm and embarked on the principle of participatory development planning. Although the intention was to attribute aid-recipient government the lead role in defining policies funded by the WB, and expand the development and poverty understanding with views from the civil society and the poor, the initiative exhibited various weaknesses in implementation. This paper analyzes the weaknesses but also the progress in implementation of PRSP through the assessment of various development stakeholders' involvement in order to answer whether the PRSP approach represents a change in the practices and philosophy of the WB towards developing countries. While many civil society groups maintain that regardless of its policy shifts, the WB is resistant to change its ideological pattern, the paper argues that the PRSP initiative is a sign that the Bank is changing. It insists that, with the adoption of PRSP, governments seized their legitimate authority to shape the development policy framework for their own country and determine conditions for policy support, while non-state development stakeholders acquired an outstanding opportunity to influence development outcomes. With Vietnam and its Comprehensive Poverty Reduction and Growth Strategy (CPRGS) as a case study, the paper identifies the necessary conditions and prerequisites for a successful PRSP implementation, and points out what it takes for a country to be in the driver's seat over the development course. Amidst various efforts to reform its policies, the World Bank (WB) has announced a new policy framework for national development over the past five years, known as the "Poverty Reduction Strategy Papers" (PRSP). This framework adapts the "Comprehensive Development Framework" (CDF), published the previous year, to the "Millennium Development Goals" (MGDs), initiated by the United Nations (UN). This has resulted in a new approach that replaces the core concept of poverty reduction in the development paradigm and establishes a new approach based on the principles of participatory development planning. While the initial intention was to empower recipient governments to take a leading role in formulating policies funded by the WB and to foster a broader understanding of development and poverty alleviation, incorporating input from civil society groups and the poor, initial implementation has revealed numerous weaknesses. This study analyzes these weaknesses and further examines... This report analyzes the progress of the Poverty Reduction Strategy (PRSP) by assessing the involvement of various development stakeholders to determine whether the PRSP approach signals a practical and philosophical shift by the World Bank in its approach to developing countries. While civil society groups remain indifferent to this policy change, and the World Bank itself resists ideological shifts, the report argues that the initiation of the PRSP signals a shift in the World Bank's approach. It asserts that the implementation of the PRSP has allowed governments to leverage their legitimate authority to revise their national development policy frameworks and set conditions to support these policies. Meanwhile, non-state stakeholders have also seized this opportunity to shape development outcomes. The study uses Vietnam's Comprehensive Poverty Reduction and Growth Strategy (CPRGS) as a case study. This outlines the necessary conditions and prerequisites for the successful implementation of the Poverty Reduction Strategy Plan (PRSP), and highlights what Vietnam should do to ensure its successful progress through the development process.