New Forms of Power in ‘Post’-Neoliberal Development Policy: A

case study of evolving World Bank lending practices in Argentina

Abilene PittPhD CandidateDepartment of International Relations, Politics and SociologyOxford Brookes Universityabilene.pitt@brookes.ac.uk

Argentina and the Bank

• Case study as a way to see the results when pressure for reform comes from both sides.

• Argentina post-crisis able to make new demands on the type of support received

• Concurrently re-think at the World Bank on the concept of development

WB Development Policy Shifts

• Washington consensus and the neo-liberal development focus

• Structural adjustment – Comprehensive Development Framework

• Lack of infrastructure to blame for failings

• World Development Report 2000/1 – a self critical approach

A ‘post’-neoliberalism?

• Post-neoliberal politics vs neoliberal ‘plus’ lending

• IFI targeted welfare measures

• Latin American critical break with Washington paradigms

• Jasasuriya- social reforms not opposed to neoliberal policies, but as market enabling

Development Policy Shifts plus Post-neoliberal Politics

• IMF default and repayment

• Backlash against presence of IFI’s

• Halt on all World Bank lending 2001-2003

• World Bank acknowledges image problem and takes steps to address it

• Visible changes required

Investment Lending

• Full replacement of structural adjustment

• Partnership approach to lending

• Diversifying the portfolio

• Specific welfare provision

• Re-branding?

Three Phases

Pre-Crisis Interim Measures Now

• Structural Adjustment• Conditions•Large scale macro economic loans •Decentralisation•Infrastructure

•Investment •‘Partner’•Small scale•Diverse•Grants•Welfare focus

•Investment•‘Partner’•Large scale ‘investment’ loans•Decentralisation

•Infrastructure

Partnerships

• More far-reaching than conditionalities

• Present in every political strata in Argentina

• Abrahamsen – development partnerships as advanced liberal rule

• True ‘Partnerships’ between a borrower and lender?

Benefits

• Government happy to receive technical assistance

• Provinces happy to receive greater independent support

• Re-branding as welfare investor successful

• Key to cheap development loans for Government

Reform?

• A better and more targeted form of conditionality

• World Bank presence throughout Argentina through diverse projects (more difficult to remove)

• Neo-liberal ‘plus’. Adding welfare measures similar to institution targeting in the 1990’s

• Plugging the leaks of a flawed system?