The World Bank is itself a small-coalition political entity whose loan decisions are made by representatives of guaranteed-risk banks and recipient-country governments who profit from continued flows — so it does what is incentive-compatible for its constituents rather than advancing welfare, and exists fundamentally to make loans.

causalpending

Speaker

Bruce Bueno de Mesquita

Evidence Quote

the World Bank exists to make loans if the World Bank were in the business of not making loans it wouldn't be a world bank

Source

Bruce Bueno de Mesquita on Democracies and Dictatorships 2/12/2007EconTalk
Created: 6/15/2026, 9:20:39 AM

My Notes

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