Is the World Bank compatible with the “Socialist-oriented market economy”?

Abstract

Thanks to a remarkable economic performance, Vietnam has achieved huge poverty reduction and has become a middle income country. Although Vietnam considers itself as a ‘socialist-oriented market economy’, the World Bank presents it as a model student of liberalism and market-oriented reforms. The relationship of mutual interest between the World Bank and Vietnam explains this apparent paradox: in its constant search for legitimacy, the former is desperately looking for development models and new clients; the latter accepts this misrepresentation because it needs foreign funding and international credibility. The paper details the example of poverty reduction strategies, which gave the World Bank the opportunity to ‘plant its flag’ in Vietnam.