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For many years, the World Bank Group has implemented policies for economic development in African countries. The policies are geared towards creating good governance and improving investment climates. The Bank attempted to co-ordinate foreign direct investment from mainly Europe and United States. The body was structured to work through government ministries at inception. For example, the Ministry of Agriculture would be responsible for implementing investment agenda in agriculture. Similarly, investment in health sector would be co-ordinated by the Ministry of Health. Working through governmental ministries sounds like a wise idea. The assumption is that the officials in these ministries will establish top-down infrastructure, permeating the entire country.

In the 1970s, the 80s, and even in the 90s this used to happen. The more resources the Bank poured into the hands of the governments, the worse the problems they tried to solve became.
What went wrong? The Bank expected someone else to implement its vision. A fundamental truth is that no one can implement the vision of another. The ministers could not implement a vision which is not their own, in lieu of the vision of the Bank. When the ministers received the funding, they implemented their own vision and not that of the Bank.
Language: English
August 15, 2008
Popularity: 102

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Comments to this article
Guda Sathyanarayana August 28, 2008, 2:33 am
Crucial point is that more the urbanization the more the GDP. Let some institution like ADB or World Bank fund say about $500 million. Select some 50 cities, preferably not less than 15 cities in a country. Let 15 cities' governments come forward voluntarily to show a comprehensive, tangible, measurable and expressive development contributing to minimum 20% growth in the city domestic product with attendant comprehensive development and governance indicators. Such cities could be awarded a substantially as incentive at the end of five years on thorough measurement of the development. GS
Joe Flood August 17, 2008, 5:16 am
A little simplified, in that the Bank is not in the position to directly implement. But the big question is - why do the IMF/World Bank think they are empowered or even qualified to implement a vision at all?

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