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What is the argument of advocates of World Bank in promotion of development?
Advocates of the World Bank argue:
• Loans and aid alone don’t guarantee development or the reduction of poverty. Unless less developed countries act to introduce good governance that the Washington Consensus measures of finding prices right, making sure macroeconomic stability and opening up trade, and include all stakeholders within a country after that the underlying problems of the country keep unresolved. Any extra loans would be damaging and ineffective. The World Bank has no option but to demand painful short-term reform onto less developed countries for long term prosperity.
negative externalities
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