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The Political Economy of the World Bank: The Early Years Book

The Political Economy of the World Bank: The Early Years
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  • The Political Economy of the World Bank: The Early Years
  • Written by author Michele Alacevich
  • Published by Stanford University Press, March 2009
  • The Political Economy of the World Bank: The Early Years is a fascinating study of the history of the World Bank and the establishment of its role as a leading development institution.
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Authors

Preface xi

Acknowledgments xv

1 The World Bank And Development 1

Historical Context 2

Methodological Framework 3

Pars Destruens 4

Pars Construens 8

2 The Currie Mission In Colombia, 1949-1953 11

The Importance of the Colombia Mission for the Switch from Reconstruction to Development 12

End of the Reconstruction Phase 12

Initial Contacts Between the Colombian Government and the IBRD 15

The Collaboration Between Lauchlin Currie and the IBRD 22

The Mission Collects Information 22

Putting the Team Together 28

The First IBRD General Survey Mission, Colombia 1949 35

The Currie Mission Report 39

The Comite de Desarrollo Economico (1950-1951) and the Consejo National de Planificacion (1952-1954) 46

The Evolution of the Relationship Between Currie and the World Bank 50

Tensions Within the Comite de Desarrollo Economico 50

The Difficult Beginning of the Consejo National de Planificacion (1952-1953) 53

The End of the Affair 61

3 Economic Development In Theory And Practice 64

Development Approaches: Balanced Versus Unbalanced Growth 66

Balanced Growth 67

Unbalanced Growth 70

Development Approaches: Program Loans Versus Project Loans 76

Program Loans 77

Project Loans 78

The Debate on Development Reverberates Inside the IBRD 79

Conflicting Approaches: Program Versus Project 79

Program Versus Project: The Bank's Changing Attitude 80

Autobiographical Notes 82

Currie Versus Hirschman: Monetary and Fiscal Policy 83

Analyzing the Situation 83

Hypotheses 84

The Clash 85

Currie Versus Hirschman: Iron and Steel Production 87

Analysis of the Currie Mission 87

Interests at Odds 90

The "Informe de la Mision Parael Comite" and the Flesher Solution 93

Steel and Development: Reasons for Disagreement 98

Changing Alliances 103

Agreements and Disagreements 103

A Sociological Interpretation of the Development Economics Debate: Robert K. Merton and the "Kindle Cole" Principle 105

4 At The Root Of The Bank's Policy Advice 112

The Urban Development Plan for Barranquilla 114

Request for IBRD Financing 114

Why Did the Bank Refuse Financing? 118

The IBRD and Housing Loans 120

The ILO Proposal and the First IBRD Comments 120

The Disengagement of the IBRD 122

Discussions at the Bank: Impact Loans and Social Loans 123

Impact Loans 123

Social Loans 127

The Bank's Relentless Preference for Directly Productive Loans 129

Raising Funds in the U.S. Capital Market 130

Wall Street Men 131

U.S. Foreign Economic Policy and the Wane of the New Deal 133

The Early Successes of the Bank: An Obstacle to Change 136

Coda: The End of the Debate 136

The Reorganization of 1952 136

Black's Bank 144

Conclusions 147

Notes 155

Bibliography 185

Index of Names 195


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