Explaining the G7 and G10’s influence on World Bank decisions The role of formal and informal rul... more Explaining the G7 and G10’s influence on World Bank decisions The role of formal and informal rules of governance Abstract: This paper contributes to the literature examining the role played by donors ’ interests within International Financial Institutions by showing how the G7 and G10 countries manage to influence World Bank (WB) decisions to satisfy their interests. It demonstrates that the G7 and G10 meets the two conditions required to influence WB decisions: they form a unified group (1) possessing sufficient power (2). The main thrust of the argument is that the G7 and G10 provide opportunity for big countries to come together and unify their preferences regarding WB decisions. Referring to a new dataset I find conjunctions between the G7’s declarations and the WB’s decisions, primarily reflecting the G7’s unity and influence over the WB. Then, relying on interviews with WB officials and an examination of WB formal and informal rules of governance, I show how G7 instructions p...
Abstract. This article discusses the World Bank’s formal rules of governance. It states that theo... more Abstract. This article discusses the World Bank’s formal rules of governance. It states that theoretically, each of the World Bank’s member states is represented within the decision making process but in practice it is otherwise. Indeed, we demonstrate that in reality the democratic imbalance in favor of the Most Developed Countries (MDCs), caused by the voting system of the WB, is much stronger than it appears. In the first place, our analysis of the formal decision making process demonstrates that the voting system is such that a coalition of particularly coordinated countries- the eleven countries of the G10- can, on its own, constitute a majority permitting them to vote decisively on all issues. This implies that the remaining 174 members have no influence on voting results. Thus, this minority coalition alone is in position to approve loans and their attached conditions. In the second place, four features of the World Bank’s governance which protect and re-enforce the power of ...
This paper contributes to the literature examining the role played by donors’ interests within In... more This paper contributes to the literature examining the role played by donors’ interests within International Financial Institutions by showing how the G7 and G10 countries manage to influence World Bank (WB) decisions to satisfy their interests. It demonstrates that the G7 and G10 meets the two conditions required to influence WB decisions: they form a unified group (1) possessing sufficient power (2). The main thrust of the argument is that the G7 and G10 provide opportunity for big countries to come together and unify their preferences regarding WB decisions. Referring to a new dataset I find conjunctions between the G7’s declarations and the WB’s decisions, primarily reflecting the G7’s unity and influence over the WB. Then, relying on interviews with WB officials and an examination of WB formal and informal rules of governance, I show how G7 instructions provided outside the WB through declarations are relayed within to impact decisions.
Cette these etudie les reformes de privatisation des infrastructures dans les pays en voie de dev... more Cette these etudie les reformes de privatisation des infrastructures dans les pays en voie de developpement (PED) d’Afrique Sub-Saharienne (ASS). Son objectif est de comprendre les raisons de la longevite de ces reformes qui, initiees au milieu des annees 1990, sont encore d’actualite aujourd’hui (Figure 1) alors que leurs effets sont controverses. La privatisation est entendue au sens de l’OCDE (2004) comme la participation du secteur prive dans la gestion, le financement et la propriete d’une entreprise publique. Le concept d’infrastructures fait reference a toute installation utilisee pour fournir de l’electricite, de l’eau et de l’assainissement, des telecommunications et des services de transports (Estache, 2007). Il y a deux raisons majeures de s’interesser aux reformes de privatisation des infrastructures dans les pays d’ASS. La premiere tient a l’importance des enjeux politiques et economiques associes au developpement des infrastructures en ASS. Les infrastructures sont d’u...
This paper questions the determinants of infrastructure privatization in Djibouti and seeks to ex... more This paper questions the determinants of infrastructure privatization in Djibouti and seeks to explain why this policy is still implemented today. Through case studies, the paper analyses the privatization processes of the port, electricity, and railway sectors. The paper shows that privatization has four major determinants: the presence of favourable contingent elements; the presence of political interests; the extent to which the contractual arrangements conform to government expectations, and the existence of alternative solutions. Furthermore, the paper explains that privatization is still considered today because the change of its target makes the interests of the government, donors, and private investors compatible.
International Journal of Transport Economics, 2013
Whereas infrastructure privatization globally yields its poorest effects in the least developped ... more Whereas infrastructure privatization globally yields its poorest effects in the least developped countries, the World Bank (WB) has prescribed this policy in Sub-Saharan Africa (SSA) more than anywhere else and has intensifed its prescriptions in recent years. This paper questions the utility of these prescriptions. Relying on an empirical analysis based on 270 infrastructure privatization cases in SSA between 1960 and 2009, it tests a number of hypotheses in order to determine whether infrastructure privatization has been most beneficial to firms of the main WB donors (the G10). A first result is that foreign and G10 firms benefit more from infrastructure privatization when it is supported by the WB than when it is not. But the most striking result is that the WB provides greater support to privatization in the sub-sectors of infrastructure that benefit the most to G10 firms.
Hit by a catastrophic economic crisis in the early 1990s, in the years following Djibouti experie... more Hit by a catastrophic economic crisis in the early 1990s, in the years following Djibouti experienced a booming growth in its port trade, which gradually improved the country’s economic situation. Although sidelined by the global economic crisis and formerly suffering from mismanagement, the Djibouti port sector today appears to be one of the most modern in East Africa. This paper examines the reasons behind its success; it identifies the determinants of the sector’s growth and analyzes the ways in which the various projects have been executed. Finally, it questions the sustainability of Djibouti’s success in a context of financial crisis and increased competition from the other regional ports.
Explaining the G7 and G10’s influence on World Bank decisions The role of formal and informal rul... more Explaining the G7 and G10’s influence on World Bank decisions The role of formal and informal rules of governance Abstract: This paper contributes to the literature examining the role played by donors ’ interests within International Financial Institutions by showing how the G7 and G10 countries manage to influence World Bank (WB) decisions to satisfy their interests. It demonstrates that the G7 and G10 meets the two conditions required to influence WB decisions: they form a unified group (1) possessing sufficient power (2). The main thrust of the argument is that the G7 and G10 provide opportunity for big countries to come together and unify their preferences regarding WB decisions. Referring to a new dataset I find conjunctions between the G7’s declarations and the WB’s decisions, primarily reflecting the G7’s unity and influence over the WB. Then, relying on interviews with WB officials and an examination of WB formal and informal rules of governance, I show how G7 instructions p...
Abstract. This article discusses the World Bank’s formal rules of governance. It states that theo... more Abstract. This article discusses the World Bank’s formal rules of governance. It states that theoretically, each of the World Bank’s member states is represented within the decision making process but in practice it is otherwise. Indeed, we demonstrate that in reality the democratic imbalance in favor of the Most Developed Countries (MDCs), caused by the voting system of the WB, is much stronger than it appears. In the first place, our analysis of the formal decision making process demonstrates that the voting system is such that a coalition of particularly coordinated countries- the eleven countries of the G10- can, on its own, constitute a majority permitting them to vote decisively on all issues. This implies that the remaining 174 members have no influence on voting results. Thus, this minority coalition alone is in position to approve loans and their attached conditions. In the second place, four features of the World Bank’s governance which protect and re-enforce the power of ...
This paper contributes to the literature examining the role played by donors’ interests within In... more This paper contributes to the literature examining the role played by donors’ interests within International Financial Institutions by showing how the G7 and G10 countries manage to influence World Bank (WB) decisions to satisfy their interests. It demonstrates that the G7 and G10 meets the two conditions required to influence WB decisions: they form a unified group (1) possessing sufficient power (2). The main thrust of the argument is that the G7 and G10 provide opportunity for big countries to come together and unify their preferences regarding WB decisions. Referring to a new dataset I find conjunctions between the G7’s declarations and the WB’s decisions, primarily reflecting the G7’s unity and influence over the WB. Then, relying on interviews with WB officials and an examination of WB formal and informal rules of governance, I show how G7 instructions provided outside the WB through declarations are relayed within to impact decisions.
Cette these etudie les reformes de privatisation des infrastructures dans les pays en voie de dev... more Cette these etudie les reformes de privatisation des infrastructures dans les pays en voie de developpement (PED) d’Afrique Sub-Saharienne (ASS). Son objectif est de comprendre les raisons de la longevite de ces reformes qui, initiees au milieu des annees 1990, sont encore d’actualite aujourd’hui (Figure 1) alors que leurs effets sont controverses. La privatisation est entendue au sens de l’OCDE (2004) comme la participation du secteur prive dans la gestion, le financement et la propriete d’une entreprise publique. Le concept d’infrastructures fait reference a toute installation utilisee pour fournir de l’electricite, de l’eau et de l’assainissement, des telecommunications et des services de transports (Estache, 2007). Il y a deux raisons majeures de s’interesser aux reformes de privatisation des infrastructures dans les pays d’ASS. La premiere tient a l’importance des enjeux politiques et economiques associes au developpement des infrastructures en ASS. Les infrastructures sont d’u...
This paper questions the determinants of infrastructure privatization in Djibouti and seeks to ex... more This paper questions the determinants of infrastructure privatization in Djibouti and seeks to explain why this policy is still implemented today. Through case studies, the paper analyses the privatization processes of the port, electricity, and railway sectors. The paper shows that privatization has four major determinants: the presence of favourable contingent elements; the presence of political interests; the extent to which the contractual arrangements conform to government expectations, and the existence of alternative solutions. Furthermore, the paper explains that privatization is still considered today because the change of its target makes the interests of the government, donors, and private investors compatible.
International Journal of Transport Economics, 2013
Whereas infrastructure privatization globally yields its poorest effects in the least developped ... more Whereas infrastructure privatization globally yields its poorest effects in the least developped countries, the World Bank (WB) has prescribed this policy in Sub-Saharan Africa (SSA) more than anywhere else and has intensifed its prescriptions in recent years. This paper questions the utility of these prescriptions. Relying on an empirical analysis based on 270 infrastructure privatization cases in SSA between 1960 and 2009, it tests a number of hypotheses in order to determine whether infrastructure privatization has been most beneficial to firms of the main WB donors (the G10). A first result is that foreign and G10 firms benefit more from infrastructure privatization when it is supported by the WB than when it is not. But the most striking result is that the WB provides greater support to privatization in the sub-sectors of infrastructure that benefit the most to G10 firms.
Hit by a catastrophic economic crisis in the early 1990s, in the years following Djibouti experie... more Hit by a catastrophic economic crisis in the early 1990s, in the years following Djibouti experienced a booming growth in its port trade, which gradually improved the country’s economic situation. Although sidelined by the global economic crisis and formerly suffering from mismanagement, the Djibouti port sector today appears to be one of the most modern in East Africa. This paper examines the reasons behind its success; it identifies the determinants of the sector’s growth and analyzes the ways in which the various projects have been executed. Finally, it questions the sustainability of Djibouti’s success in a context of financial crisis and increased competition from the other regional ports.
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Papers by Arthur Foch