Development Theory and the Multilateral Development Banks

Although they are leading institutions in the world of modern development finance, the multilateral development banks have not been very explicit in outlining the development theories upon which they base their loan operations. This paper assesses the utility of the three prime theories employed by these institutions: the project approach, the macroeconomic (gap theory) approach, and the social welfare (or income distribution) approach. It indicates the questions to which each approach addresses itself, and it indicates weaknesses and theoretical inadequacies of each as a primary or sole development tool. Only a balanced and careful use of all these sometimes contradictory approaches will permit the multilateral lending institutions to fulfill their multifaceted obligations

Business · Development (topology) · Economics · Loan · Market economy · Prime (order theory) · Welfare · Finance · Fiscal Policy and Economic Growth · International Development and Aid · Public-Private Partnership Projects