chapter  4
PROGRAMME DESIGN
Pages 44

In this chapter we consider in detail the manner in which the policy reform conditions attached to World Bank programme loans are designed and negotiated, that is, the cluster of actions represented as Act 1 in Figure 3.3. The questions to be tackled, in sequence, are: what is the condition which the Bank saw itself as trying to remedy by means of conditional programme finance? How did it derive its diagnosis of what was wrong, and its prescription of what had to be done to make things better? How was the division of labour between the different agencies offering development finance - notably the Bank, the Fund, the bilateral agencies, and the commercial banks - arrived at? How did the Bank determine the order in which its own prescriptions were to be offered to developing countries? Bearing in mind the likelihood that the recipient might expect the dose to taste nasty, what strategies did the Bank use to sugar the pill? What strategies did the patient employ to get the best out of his doctor, and what was the shape of the deals that resulted? Can the shape of these deals be related to indicators of the nature of the disease, or alternatively to the degree of the donor and recipient's bargaining power? What has the Bank learned from fifteen years of experience, and what else could it usefully learn?