MDB Corporate Strategies as Flawed Accountability Mechanisms

• In Event: IOs and International Order

Abstract

Multilateral development banks (MDBs) share norms on the substance of their corporate strategies, which are foundational guides for MDBs to effectively carry out their mandates, be responsive to shareholders, and contribute to development effectiveness. These corporate strategies are meant to be key mechanisms for MDB accountability and transparency. Yet, these corporate strategies do not smoothly cascade down to connect high level objectives with operational practices. There are multiple hiccups, disconnects, mismatched incentives, and challenges in measuring their outputs. As a result, their value as mechanisms for accountability is limited. The paper shows how MDB corporate strategy norms, shaped by trends in development and management calling for result-based management, face a variety of institutional obstacles that undermine their effectiveness. The result is that shared norms for accountability ultimately undermine accountability. The paper engages with and contributes to the literatures on the design and performance of international organizations, focusing on an important but under-researched area.

Author

• Tamar Gutner, American University-SIS