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Drawing at the Latin American political economic climate, this e-book brings to the fore empirical questions about diversified styles of involvement of IFIs in pursuing politically-sensitive reforms, the skill of neighborhood actors to steer results, the context within which they have interaction, the kind of coverage principles conveyed, and the coverage procedure which are complicated.
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Additional resources for Advancing Governance in the South: What are the Roles for International Financial Institutions in Developing States? (International Political Economy)
9). : 267; Cammack 2007). The approach taken in this book, therefore, takes from the notion that paradigms are not transferred from one setting to another without giving rise to contesting and conﬂicting relations with the local actors – and thus that local actors are not passive recipients of external funds and knowledge. The study attempts to develop a broader and more inclusive understanding, bridging the gap between politics and economics and global and domestic politics, concentrating on the role of the IFIs in politically sensitive reforms in developing countries and the dynamics of social relations between external and local actors.
Taking from these lessons, Chapter 7 analyses, from a broader and comparative perspective, the challenges for the IFIs in a context in which the current neoliberal model became discredited and eroded in Latin America. The regional political scenario is now very different from that of the 1990s and there is a range of elected incumbents who are not only critical of neoliberalism but willing to push for the adoption of alternative models of governance, founded on the rejection and criticism of neoliberal adjustment and externally imposed stabilization.
In addressing these issues, this chapter puts forward three theoretical arguments that structure the rest of the analysis. First, that the capacity of the IFIs, in particular the World Bank, to produce and diffuse knowledge on what constitutes good economic policy (good governance) is a powerful ontological instrument affecting the way people perceive and think of economic development. Thus, production and diffusion of knowledge has become a critical factor within the structure of power and global scope of the IFIs, since it enhances their capacity to frame issues and outline solutions.