Abstract

While the cancellation of a number of high-profile loans because of corruption concerns has made headline news, the World Bank's principal approach to poorly governed countries is lending in order to support reforms. Although designed to be an apolitical technocratic development financier, increasingly the Bank has focused its attention and resources on promoting good governance in its borrowers. Bank lawyers and presidents have attempted to hive of apolitical aspects of governance by arguing a distinction between the rule of law and the political character of government, but this distinction is illusory. The Bank's inability to address the political embeddedness of poor governance in neo-patrimonial governments skews risk assessments and impedes the formation of effective strategies. Reform of the charter would not eliminate the Bank's bureaucratic and political constraints.