Adjustment lending retrospective

Abstract

In September 2000, the Development Committee discussed supporting country development: the World Bank role and instruments in low- and middle-income countries. That paper suggested adapting adjustment lending in the Bank's country programming cycle for International Development Association (IDA) borrowers to support country-led poverty reduction strategies. More recently, the task force on the World Bank Group and the middle-income countries has discussed the role of adjustment lending as a vehicle for promoting growth and poverty reduction in International Bank for Reconstruction and Development (IBRD) borrowers. These discussions reflect parallel evolutions: (a) as reflected in the comprehensive development framework, the development paradigm has become a country-focused approach that recognizes the critical role of policies and institutions for development outcomes, especially growth and poverty reduction; and (b) adjustment lending has become a more flexible developmental instrument for partnering with others in supporting country programs.