Multilateral Development Banks, Governments, and Civil Society: Chiaroscuros in a Triangular Relationship

Abstract

andmark events such as the end of the Cold War, the renaissance of market policies, and the worldwide expansion of liberal political K J systems have contributed to civil society being gradually accepted as a legitimate international actor. Although nongovernmental organiza tions (NGOs) have implemented microlending and resettlement projects since the 1980s, the setting is different today. So is the responsibility of th? players. For one thing, NGOs are now given the responsibility of iden tifying vulnerable groups and social needs in order to design effective as sistance programs; NGOs are also seen as vehicles for maximizing the ef fectiveness of international funds. Most important, they have become the main challenge to the agendas of international economic institutions. It is in this context that the World Bank and the Inter-American Devel opment Bank (IDB) initiated step-by-step adjustments in their mission and mandate on the one hand, and operational changes on the other. Both en larged their agendas to incorporate interventions in areas closely associated with public administration (that is, modernization of the state, consolidation of democratic institutions, strengthening of local governments, protection of human rights and the environment, and reform of social policies). Condi tions applied to the loans and their implementation in specific projects also became subject to public monitoring. The cultural change within the insti tutions themselves demanded new skills to initiate consultations with local civil society. These advances have not followed a linear progression. The new approach still coexists with the persistence of traditional top-down practices. Furthermore, country case studies show that there is a major gap between the incorporation of new modalities by the multilateral develop ment banks (MDBs) and their implementation in programs and projects at the national level, often as a result of borrowing governments' resistance. In this concluding essay, we bring together the various components of our project in two main parts. In the first, we deal with the governance