The World Bank and higher education reform in Ethiopia: knowledge aid and its undesirable effects

This chapter critically examines World Bank (WB) support for Ethiopia, specifically for its higher education (HE) system. It is now almost commonplace for support for developing nations from International Organizations (IOs) such as the WB to be the subject of analysis and critique. Reasons for this are not difficult to discern, particularly in relation to the WB 's activities. This is because the WB is the largest external financial source for educational expenditure in developing countries in general and in Sub-Saharan Africa (SSA) in particular (Jones 2007). In fact, the Bank provides about a quarter of all external funds for education in low-income countries (LICs) (Domenech and Mora-Ninci 2009). In twenty years (1990-2010), the WB committed a total of nearly US$42 billion for education (Molla 2013b). Poor countries with low annual per capita income are eligible for the WB 's financial aid, which includes concessional outright grants and interest-free long-term loans (World Bank 2007a).

Policy-based lending, structural adjustment and economic growth in Pakistan

This paper provides an econometric analysis of Pakistan’s structural adjustment program. Introduced in 1980, this program has been supported by the World Bank and IMF under their policy-based lending regimes. Building on recent advances in modelling the impact of policy reform, the paper applies a smooth transitions model to Pakistani real GDP data for the period 1960–2000. Results of this analysis suggest that the adjustment program has not stimulated growth in Pakistan, and that the origins of Pakistan’s post-program growth performance well pre-date this program.

Financialisation of official development assistance

Official Development Assistance is a significant global enterprise. Organsiations engaged in funding and implementing ODA (the bilateral donors, multilateral organsiations such as the World Bank and IMF) have unprecedented political and economic influence over a large number of sovereign developing countries. This paper analyses if, and how financialisation impacts on development aid, and implications for effective aid policy agendas, drawing on and linking critical debate on finacialisation, and ODA. Subsequent to the Global Financial Crisis (GFC) and the persistence of the European Monitory Crisis (EMC), specific needs of developing countries became increasingly sub-ordinated to political and ideological power relations between ‘real’ economics and financial economics otherwise known as financialisation. The paper finds ‘financialisation’ as the ideological, political and economic catalyst for economic growth potentially confusing long-term development to combat poverty, and a short term need to overcome the lack of financial capacity in developing recipient countries. Sustainable economic development requires developing countries to forsake the pursuit of financialisation and to re-delineate their national finance, trade and investment regimes, and re-state it in a balanced manner as to take into account their unique economic development needs rather that the donor agencies’ demands and to advance their own ‘real’ economies.

Greening political risk: transnational advocacy networks and the World Bank Group

Significant increases in direct private investment in developing countries in recent decades have also led to increased interest in political risk insurance. Of importance to transnational advocacy networks are the environmental and social impacts of guaranteeing loans for private sector projects in developing countries with weak or no social or environmental safeguards. This article examines how transnational advocacy networks have attempted to influence political risk insurers to become sustainable development guarantors through a case study of the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA). Analyzing how advocacy networks influenced MIGA’s projects, policies, and accountability institutions enables greater understanding of how to ‘politicize finance.’ It also assesses the likelihood of shaping political risk insurance identities to become sustainable development guarantors. The outcomes of such an analysis however, question the extent to which politicizing finance necessarily leads to further greening of the international development lending process.

External policy influence and higher education reform in Ethiopia : understanding symbolic power of the World Bank

Increasingly national policy processes are intersected with and affected by global policy actors and ideas. In aid-recipient countries such as Ethiopia, donors use financial and non-financial means to influence national policy decisions and directions. This paper is about the non-financial influence of the World Bank (WB) in the Ethiopian higher education policy reform. Using Pierre Bourdieu’s concept of symbolic power as a ‘thinking tool’, the paper aims to shed light on forms of symbolic capital that the Bank uses to generate a ‘misrecognisable’ form of power that regulates the HE policy process in Ethiopia. The findings show that the WB transforms its symbolic capital of recognition and legitimacy to establish a ‘shared misrecognition’ and thereby make its policy prescriptions implicit and hence acceptable to local policy agents. The Bank uses knowledge-based regulatory instruments to induce compliance to its neoliberal policy prescriptions. The paper therefore underscores the value of symbol power as an analytical framework to understand elusive but critical role of donors in policy processes of aid recipient countries.

Norm diffusion within international organizations: a case study of the World Bank

Constructivists often argue that International Organizations (IOs) diffuse norms throughout the international system. This article asks the question: if IOs promote and diffuse specific norms within world politics, where do these norms come from? In particular, this analysis seeks to formulate how IOs' identities emerge in issue areas where rationalist theories give limited explanation, such as the environment. This article posits that IOs interact with and consume norms from non-state actors such as transnational advocacy networks, a process overlooked by the constructivist analysis of institutions. This is examined through a case study of the World Bank's environmental identity where transnational advocacy networks played an important role in the Bank's shift towards sustainable development, through processes characterized here as direct and indirect socialization. This article demonstrates that the Bank's shift was more than instrumental as a result of this interaction, and that constructivists therefore need to examine the role of IOs as norm consumers as well as norm diffusers.

Invested truth in World Bank education policy: The exclusion of educators' perspectives in the future of education

The objective of the paper is to critically review the positioning of teachers in the World Bank's Education Sector Strategy 2020. The review is framed through the lens of Habermas' communicative action theory (CAT) to show how teachers' truth, rightfulness and truthfulness are obfuscated in the new policy. Habermas centres notions of democratization and participation as key requirements for representative systems. However, as the new strategy takes shapes, what is more apparent is the further marginalization of educators and education scholars from education reforms. The review suggests that education and teachers' work is becoming further embedded in broader social and economic systems. This is despite extensive consultations that are a feature of the new strategy and its development. The paper raises questions about the work of teachers and their place within education systems whose development is influenced by agencies such as the World Bank. As more of the analytical and intellectual tasks associated with education and teachings are being taken over agencies and organisations, t...

Tax incentives for foreign direct investment part I : Recent trends and countertrends

According to the conventional wisdom, tax incentives for investment - in particular for foreign direct investment (FDI) - are not recommended. That is the view held almost universally by theorists and by the international bodies that advise on tax matters.' Tax incentives are bad in theory and bad in practice. They are bad in theory principally because they cause distortions: investment decisions are made that would not have been made without the inducement of special tax concessions. They are bad in practice, being both ineffective and inefficient. They are ineffective in that tax considerations are only rarely a major determinant in FDI decisions; they are inefficient because their cost, in terms of tax revenue foregone, often far exceeds any benefits they may produce. Other criticisms are also frequently levelled against tax incentives for FDI - they are inequitable (since they benefit some investors but not others), they are difficult to administer and open to abuse, and they lack transparency. Thus, it is not surprising that ''the standard advice given by institutions like the World Bank and the lMF to developing countries is to refrain from offering tax incentives to foreign investors".2 The purpose of this article is not to question that advice or to challenge the conventional wisdom - except in one respect. Recent evidence does suggest that tax considerations are an increasingly important factor in investment decisions and that special tax incentives have become substantially more effective as instruments for attracting FDI than they were 10 or 20 years ago.3 The first part of this article, published here, examines some of that evidence, reviews some recent trends in national policies towards FDI, attempts to suggest why investment incentives have become more important and more effective, and looks at the pressures that are exerted on governments, especially in developing countries, to compete for FDI by offering special incentives. The second part of the article, to be published in the Bulletin next month, assumes that many countries will continue to offer tax incentives to investors regardless of the best advice, and considers how incentives might be designed in order to increase their effectiveness and efficiency.

Football's world cup and its fans - reflections on national styles : a photo essay on Germany 2006

The football World Cup is the greatest multicultural sporting extravaganza of modern times. The notion of post-fandom tries to capture the ways in which fans now participate in and engage in self-aware and reflexive strategies to obtain their desired outcomes from attendance at or viewing such major events. This illustrated photo-essay on the World Cup looks at the experiences and behaviour of fans in three countries, Scotland, Germany and Australia, during the tournament with a view to extending our understanding of the relationships between fans and others temporarily interested in the World Cup and the promoters of such mega-events. It argues that the participants brought a wide range of expectations to the tournament and engaged in highly flexible and innovative approaches to ensure that they gained the maximum benefit, individually and collectively, from the experience.