From Project Based Lending to Policy Based Lending: An Evaluation of Structural Adjustment Lending Policy of World Bank

摘要

Abstract. World Bank lending policies have seen considerable changes in the last half a century. Though the main objectives of establishment of World Bank after the second World War was to provide financial assistance and participate in the reconstruction of the post war devastated economies but within fifty years of its foundation, World Bank has changed its sole objective from providing project based lending to sectoral interference in the economies with policy prescriptions. This policy shift from the World Bank side has witnessed new programmes of lending called Structural Adjustment Loans. This article reviews the original objectives of the Bank and the transformation towards Structural Adjustment Lending which has changed the basic economic policies of many borrower countries and the economies of the world.Keywords. World Bank, conditionality, Structural Adjustment Loans, Macroeconomic policies.JEL. E44, E62, F35, H81.