growth. Hirschman thus wondered whether “construction (as distinct from operation) had given rise to economic activities which have since then continued and expanded,” and “what linkage effects to other kinds of economic activity have resulted from the operation of the project.”<sup>18</sup> Finally, Hirschman recommended analyzing even the most far-reaching consequences, such as the effects of projects on the distribution of wealth, income, and power in the recipient country; the development of new entrepreneurial and administrative capabilities, in both the public and private sectors; and the introduction of “fundamental structural changes.”<sup>19</sup> Candidate projects for inclusion in Hirschman’s study had to meet three basic criteria: they had to be diverse in sector and geographical area; they had to have a history; and, finally, they had to be identifiable activities which required continued maintenance and brought about identifiable linkage effects. Hydroelectric projects, specific highways, or industries (preferably basic ones) were the natural candidates, as opposed to loans for general highway reconstruction and maintenance activities, for the purchase of agricultural machinery, or for balance of payments purposes (Hirschman 1967a, p. 3). With the help of Bank officers in the Area Departments, the Technical Operations Department, and the Economic Department, Hirschman selected a list of projects.<sup>20</sup> Feedback from Bank officers was positive. Dragoslav Avramovic – a senior economist, soon to become the Bank Director of Special Economic Studies – remarked that “probably for the

> 17 As will be clear below, Hirschman focused on the analysis of specific hydroelectric or industrial plants, as opposed to program loans or balance of payments loans. Hence, by “construction” Hirschman is here referring to the building of a plant or a specific road or a canal, to distinguish this phase from their “operation”. 18 Albert O. Hirschman, “A study of completed investment projects which have received financial support from the World Bank”, June 5, 1963, World Bank Hirschman Folders Vol. 1.

> 19 Albert O. Hirschman, “A study of completed investment projects which have received financial support from the World Bank”, June 5, 1963, World Bank Hirschman Folders Vol. 1.

> 20 Dragoslav Avramovic to Mr. Hugh B. Ripman, “Investment in Developing Countries – Effects, Expectations and Reality,” February 18, 1964, Albert O. Hirschman Papers, Box 56, Folder 13; S. Shahid Husain to Professor Albert Hirschman, February 19, 1964, Albert O. Hirschman Papers, Box 56, Folder 13; Albert Waterston to Mr. Dragoslav Avramovic, “Investment in Developing Countries – Effects, Expectations and Reality,” February 20, 1964, Albert O. Hirschman Papers, Box 56, Folder 13; E. P. Wright to Messrs. Stevenson, Mason, Brakel, Jeffries, “Professor Hirschman’s Research Project,” February 24, 1964, Albert O. Hirschman Papers, Box 56, Folder 13; E. P. Wright to Mr. A. Stevenson and Mr. Escott Reid, “Professor Hirschman’s Research Project,” March 3, 1964, Albert O. Hirschman Papers, Box 56, Folder 13; Pierre L. Moussa to Mr. Dragoslav Avramovic, “Hirschman Project,” March 3, 1964, Albert O. Hirschman Papers, Box 56, Folder 13; S. S. Husain, “Projects suggested for study during Professor Hirschman’s discussions with Messrs Aldewereld, Sadove and Schmidt on 16<sup>th</sup> and 17<sup>th</sup> March 1964,” March 19, 1964, Albert O. Hirschman Papers, Box 56, Folder 13; Jacques Vignes to Mr. Orvis A. Schmidt, “Hirschman Study – Suggestions on Projects to be Studied,” March 26, 1964, Albert O. Hirschman Papers, Box 56, Folder 13; S. S. Husain to Mr. Richard H. Demuth, “Hirschman Study,” April 3,

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