But in the past few years, numerous studies have concluded otherwise. This latest report confirms that. Policy reform, it says, is primarily driven by domestic political economy considerations. Arm-twisting and financial inducement seldom succeed. Governments will respond to domestic imperatives.
Successful reformers have consultative processes and build consensus for change, the bank claims.
The fact that its two success stories were military dictatorships challenges this conclusion. Large amounts of aid to countries with bad policies sustained those policies. This question is not answered. The World Bank uses these conclusions to suggest a much more cautious way ahead. The report suggests that their assistance will be more effective when it is firmly tied to good policies and good behaviour.