The World Bank, contradictory lending, and forests: A cross-national analysis of organized hypocrisy

Abstract

This article draws on the theory of organized hypocrisy to test the hypothesis that World Bank lending in different sectors has contradictory impacts on forests. The authors use ordinary least squares regression to analyze newly available satellite imagery data on forest loss from 2001 to 2014 for a sample of 89 low and middle income nations. The analysis finds support for the theory of organized hypocrisy. The results indicate that World Bank structural adjustment lending and investment lending in the agriculture and forestry sectors are related to more forest loss but World Bank investment lending in the environmental sector is related to less forest loss. The article concludes with a discussion of the theoretical, methodological, and policy implications.