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Key Text World Bank Influence and Institutional Reform in Argentina

Author: Maria F. Tuozzo
Date: 2009
Size: 19 pages (220 KB)

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Summary

How has the World Bank influenced institutional reforms in Argentina? During the 1990s, the World Bank increasingly promoted the concept of governance reforms. This article from Development and Change looks at governance reforms in Argentina’s judicial sector. The World Bank’s approach to institutional reform has been donor-driven, overly technical and based on restricted forms of decision making. This approach contributed to inadequate initiatives in Argentina and is likely to yield disappointing results elsewhere.

In the 1990s, Argentina had no independent, accountable judiciary; access to the justice system was restricted and the administration of justice ineffective. Governance-related reforms aimed to improve the rule of law and increase transparency, accountability and quality in public administration. Many of these reforms were sponsored by the World Bank. This article focuses on a federal-level judicial reform project, the Model Court Programme (PROJUM). PROJUM aimed to implement a new model of court management and administration and serve as an example to promote other judicial reforms.

The World Bank’s approach to institutional reform has three distinct characteristics: donor-driven design; reliance on technical approaches; and selective involvement of key stakeholders.

  • Donor-driven design of reforms: World Bank operations tend to rely on general models or ‘blueprints’. These are implemented in a variety of countries with the expectation they will produce similar results. PROJUM was designed elsewhere and transferred to Argentina.
  • Reliance on technical approaches: World Bank projects tend to be characterised by technocratic approaches. PROJUM had an overly technical focus that dealt mainly with managerial and efficiency issues. This approach is not suited to dealing with power struggles and norms embedded in institutional structures.
  • Selective involvement of stakeholders: There had long been efforts towards judicial reform in Argentina involving local think-tanks and NGOs, but these groups were not involved in the development of PROJUM. The need for wider-based support for the programme became increasingly evident as the project developed.

PROJUM closed after eight years, without significant improvement in court modernisation. This case study shows some of the problems emerging from the World Bank’s approach to institutional reform.

  • The approaches adopted by the World Bank were problematic beyond particular difficulties in Argentina. It is likely that the Bank’s mode of operation and implementation will yield similarly disappointing results elsewhere.
  • ‘Blueprint’ reforms have been widely criticised, yet they remain part of the World Bank’s operation. This approach is particularly poorly suited to governance reforms, since domestic conditions play an important role in forming institutions. No general model can properly address the complexity of institutional structures.
  • Another problem relates to the technical and apolitical approach of the World Bank. Technocratic operations are unable to substantially transform institutions. When political dimensions are sidelined, fundamental issues - such as access to justice in the case of PROJAM - are also ignored.
  • World Bank approaches to institutional reform can be traced back to its traditional forms of operation and decision-making. They are a product of its evolution and development.
  • Prioritising only certain kinds of initiatives can render reforms limited at best, inadequate at worst. The World Bank’s governance agenda challenges its expertise. It needs to re-think its fundamental goals and the political impact of its current institutional operations.

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Source: Tuozzo, M. F., 2009, 'World Bank Influence and Institutional Reform in Argentina', Development and Change, Volume 40, Issue 3, pp 467 - 485