Publication:
Political Ideology, Quality at Entry and the Success of Economic Reform Programs

dc.contributor.author Smets, Lodewijk
dc.contributor.author Knack, Stephen
dc.contributor.author Molenaers, Nadia
dc.date.accessioned 2012-12-07T23:21:08Z
dc.date.available 2012-12-07T23:21:08Z
dc.date.issued 2012-07
dc.description.abstract This study investigates how government ideology matters for the success of World Bank economic policy loans, which typically support market-liberalizing reforms. A simple model predicts that World Bank staff will invest more effort in designing an economic policy loan when faced with a left-wing government. Empirically, estimates from a Heckman selection model show that the quality at entry of an economic policy loan is significantly higher for governments with a left-wing party orientation. This result is robust to changes in the sample, alternative measures of ideology, different estimation techniques and the inclusion of additional control variables. Next, robust findings from estimating a recursive triangular system of equations indicate that leftist governments comply more fully with loan agreements. Results also suggest that World Bank resources are more productive -- in terms of reform success -- in the design of policy operations than in their supervision. Anecdotal evidence from several country cases is consistent with the finding that left-wing governments receive higher quality loans. en
dc.identifier http://documents.worldbank.org/curated/en/2012/07/16496879/political-ideology-quality-entry-success-economic-reform-programs
dc.identifier.uri http://hdl.handle.net/10986/11949
dc.language English
dc.language.iso en_US
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper; No. 6130
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject ACCOUNTABILITY
dc.subject ADJUSTMENT
dc.subject AGRICULTURE
dc.subject BALANCE OF PAYMENTS
dc.subject BANK DEBT
dc.subject BANK POLICY
dc.subject BANK SUPERVISION
dc.subject BORROWER
dc.subject BORROWING
dc.subject COMMITMENT
dc.subject COMMITMENTS
dc.subject COMPARATIVE ECONOMICS
dc.subject CONDITIONALITY
dc.subject CREDIBILITY
dc.subject DEBT
dc.subject DEBT REDUCTION
dc.subject DECISION MAKING
dc.subject DEMOCRACY
dc.subject DEREGULATION
dc.subject DEVELOPING COUNTRIES
dc.subject DEVELOPMENT ASSISTANCE
dc.subject DEVELOPMENT BANK
dc.subject DEVELOPMENT BANKS
dc.subject DEVELOPMENT ECONOMICS
dc.subject DEVELOPMENT POLICY
dc.subject DISBURSEMENTS
dc.subject DISCOUNT RATE
dc.subject ECONOMIC ADJUSTMENT
dc.subject ECONOMIC DEVELOPMENT
dc.subject ECONOMIC OUTCOMES
dc.subject ECONOMIC PERFORMANCE
dc.subject ECONOMIC POLICY
dc.subject ECONOMIC REFORM
dc.subject ECONOMIC SECTORS
dc.subject ENDOGENOUS VARIABLES
dc.subject EQUATIONS
dc.subject FINANCIAL INSTITUTIONS
dc.subject FINANCIAL SECTOR
dc.subject FISCAL DEFICIT
dc.subject FISCAL REFORM
dc.subject FOREIGN AID
dc.subject GDP
dc.subject GDP PER CAPITA
dc.subject GOVERNMENT CAPACITY
dc.subject GOVERNMENT INTERVENTIONS
dc.subject GOVERNMENT OFFICIALS
dc.subject GOVERNMENT OWNERSHIP
dc.subject GROWTH RATE
dc.subject HUMAN DEVELOPMENT
dc.subject IDA CREDITS
dc.subject INCOME GROWTH
dc.subject INCOME TAX
dc.subject INFLATION
dc.subject INFLATION RATE
dc.subject INFORMATIONAL ASYMMETRIES
dc.subject INTERNATIONAL BANK
dc.subject INTERNATIONAL DEVELOPMENT
dc.subject INTERNATIONAL ECONOMICS
dc.subject INVESTIGATION
dc.subject INVESTING
dc.subject INVESTMENT PROJECTS
dc.subject LEADERSHIP
dc.subject LENDING DECISIONS
dc.subject LENDING INSTRUMENT
dc.subject LENDING VOLUME
dc.subject LEVY
dc.subject LOAN
dc.subject LOAN AGREEMENT
dc.subject LOAN AGREEMENTS
dc.subject LOAN AMOUNT
dc.subject LOAN COVENANTS
dc.subject LOAN DISBURSEMENTS
dc.subject LOAN QUALITY
dc.subject LOAN SIZE
dc.subject LOAN SUPERVISION
dc.subject LOANS TO COUNTRIES
dc.subject MACROECONOMIC CONDITIONS
dc.subject MACROECONOMIC MANAGEMENT
dc.subject MACROECONOMIC POLICY
dc.subject MACROECONOMICS
dc.subject MARKET REFORM
dc.subject MARKET REFORMS
dc.subject MARXISM
dc.subject MAXIMUM LIKELIHOOD ESTIMATION
dc.subject MINISTER
dc.subject MOBILE PHONE
dc.subject MONETARY POLICY
dc.subject MONOPOLY
dc.subject NATURAL DISASTERS
dc.subject PERSONAL INCOME
dc.subject POLITICAL ECONOMY
dc.subject POLITICAL LEADERS
dc.subject POSITIVE COEFFICIENT
dc.subject PRIVATIZATION
dc.subject PRODUCT MARKETS
dc.subject PUBLIC SERVICES
dc.subject REGIONAL DEVELOPMENT BANKS
dc.subject REGIONAL DUMMIES
dc.subject RETURNS
dc.subject RULING PARTY
dc.subject STRUCTURAL ADJUSTMENT
dc.subject SUBVENTIONS
dc.subject TAX
dc.subject TAX REFORM
dc.subject TAXATION
dc.subject TELECOMMUNICATIONS
dc.subject TRADE BARRIERS
dc.subject TRADE POLICY
dc.subject TRANCHE
dc.subject TRANCHES
dc.subject TRANSPORT
dc.subject URBAN DEVELOPMENT
dc.subject UTILITY FUNCTION
dc.subject UTILITY MAXIMIZATION
dc.subject VALUE ADDED
dc.subject VOTERS
dc.subject WORLD BANK LENDING
dc.subject WORLD BANK LOAN
dc.title Political Ideology, Quality at Entry and the Success of Economic Reform Programs en
dspace.entity.type Publication
okr.date.disclosure 2012-07-01
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2012/07/16496879/political-ideology-quality-entry-success-economic-reform-programs
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Finance and Markets
okr.globalpractice Governance
okr.identifier.doi 10.1596/1813-9450-6130
okr.identifier.externaldocumentum 000158349_20120712142026
okr.identifier.internaldocumentum 16496879
okr.identifier.report WPS6130
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/07/12/000158349_20120712142026/Rendered/PDF/WPS6130.pdf en
okr.sector Health and other social services :: Other social services
okr.theme Social protection and risk management :: Poverty strategy, analysis and monitoring
okr.topic Macroeconomics and Economic Growth :: Economic Adjustment and Lending
okr.topic Banks and Banking Reform
okr.topic Finance and Financial Sector Development :: Debt Markets
okr.topic Economic Theory and Research
okr.topic Public Sector Corruption and Anticorruption Measures
okr.topic Public Sector Development
okr.volume 1 of 1
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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