By P. Riggirozzi
Drawing at the Latin American political economic climate, this publication brings to the fore empirical questions about varied styles of involvement of IFIs in pursuing politically-sensitive reforms, the capability of neighborhood actors to persuade results, the context within which they have interaction, the kind of coverage rules conveyed, and the coverage strategy which are complicated.
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Additional info for Advancing Governance in the South: What Roles for International Financial Institutions in Developing States?
Based on these ﬁndings issues of power, compliance, legitimacy and policy change are then discussed 22 Advancing Governance in the South within the broader context of the contemporary shift in Latin America towards a re-evaluation of the role of the state and civil society vis-`a-vis external actors in the deﬁnition of development agendas. In the ﬁnal chapter, Chapter 8, the main arguments are summarized and some crucial questions are placed to further the discussion of what ‘power’ currently means in the relationship between the IFIs and the developing countries.
Ultimately, although conditional funds and authoritative knowledge can be important factors in explaining the power of external inﬂuence to dictate certain reforms for inclusion in a government’s agenda, this does not explain the extent to which those reforms are implemented and materialized in policy change. International ﬁnancial institutions can transfer ideas that legitimize certain policy preferences and the funds that can make them happen, but the ways and extent to which 18 Advancing Governance in the South policy change occurs depends on pro-reform engagement with local actors in the materialization of ideas and interests on the ground.
Despite the relative power of the IFIs in shaping developing countries’ behaviour, this factor on its own cannot account for the choice of policy-making and even more for the results of policy implementation. Unexpected outcomes are part of the power game that results from the IFIs’ involvement in reforming the political economy of developing countries. This is particularly so since the IFIs expanded their mission to new norms of development related to ‘good’ governance. In other words, choices and decision-making are not external to developing countries, rather they are embedded in the particular situations within which they operate.