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Foreign Aid, Law Reform, and the World Bank’s Doing Business Project

Yackee Jason Webb ()
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Yackee Jason Webb: Department of Law School, University of Wisconsin Law School, 975 Bascom Mall, Madison, WI 53706, USA

The Law and Development Review, 2016, vol. 9, issue 1, 177-199

Abstract: Prominent socio-legal scholars have criticized the World Bank’s Doing Business Project on the grounds that development aid donors improperly condition aid on compliance with Doing Business norms. This paper provides the first empirical test of that thesis. I examine nearly a decade of development assistance to analyze whether developing countries that implement more Doing Business reforms indeed tend to receive more development aid. I find mixed support for the conditionality thesis. While aid from multilateral organizations and from the World Bank’s International Development Assistance (IDA) program are correlated with reform efforts, total aid, as well as aid from rich countries, is not.

Keywords: world bank; development aid; doing business; legal reform (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1515/ldr-2015-0038

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