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Informality and Effectiveness in the Operation of the International Bank for Reconstruction and Development

Informality and Effectiveness in the Operation of the International Bank for Reconstruction and Development

Abstract

The use of informal means to define the roles of the major organs of the Bank, to formulate institutional policies, to avoid disputes and sanctions or to interpret the treaty establishing the Bank has sustained its effectiveness and dynamism. Trends in the use of informality are not always consistent. Policy making is becoming more formal as a consequence of public scrutiny, while interpretation through the formal authoritative process is rare. Effectiveness of informality is not the only consideration. The legitimacy of informal practices may be questionable and should be judged in the context of the governance of the institution, which was framed taking into account certain functions and purposes.
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