Not a bank? The actual influence of liberal governance criteria on loans approved by the World Bank (IBRD and IDA)
DOI:
https://doi.org/10.51359/1808-8708.2024.250598Keywords:
World bank loans, liberalism, factor analysisAbstract
We quantitatively analyzed the relationship between the loans made by the World Bank (WB) and three dimensions of liberalism for which the institution is known as one of the main intellectual supporters: political, legal-institutional and economic. A panel data containing 99 countries for the 1996-2014 time period was built and went through a multivariate factor analysis of 17 governance indicators. The results indicate that loans approved by the WB (ex-ante disbursements) are not correlated with the indicators of political and economic liberalism. We identified correlation with three indicators of legal-institutional liberalism, which echoes the Bank’s 2000s updated guidelines of ‘country ownership’, consistent with its own mandate as a public development multigovernmental organization, and not a ‘private’ bank.
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