The collapse of the World Bank’s judicial reform project in Peru JEFFREY A . CLARK , PAT RICIA ARMST RO N G AND
In 1998, the World Bank suspended and then cancelled a US $22.5 million loan to help Peru modernize and improve its judiciary, following several attacks on judicial independence by the now-disgraced Fujimori administration. This chapter chronicles the collapse of the project in the context of a growing World Bank emphasis on judicial independence in projects it finances. We find that the fate of the project was ultimately decided by that changing emphasis.