africa

Africa at a Fork in the Road: Taking Off or Disappointment Once Again?
Figure 12.4: Political Institutions in Africa, 1970-1995
Source: Bates, 2008c.
12.3.2.2 Pressures for change
By the end of the 1970s, the international community was fully aware of Africa’s
economic plight. Emboldened by the reformist mandate bestowed by its President,
Robert McNamara, the World Bank had financed a dazzling array of small-farmer
and community-level projects. As recounted in its official history, the World Bank’s
own evaluations revealed a distressingly low rate of return for its Africa projects
(Kapur, 1997). When seeking reasons for the failure of its projects, the Bank found
them in “the policy environment.” In its famed “Berg Report” (World Bank, 1981),
for example, it highlighted the impact of government policies in Africa that distorted
markets, weakened incentives, and thereby undermined rural economies.
In addition to being a financier of projects, the World Bank then became an advisor
to governments. In pursuit of policy change, it drew upon two sources of strength.
The first was expertise. Through publications, seminars, and the training of public
servants, the Bank sought to expose the economic costs of prevailing policies and
to offer alternatives. The second was capital. In any given country at any given
195