Nudging or Fudging: The World Development Report 2015

Fine, Ben; Johnston, Deborah; Santos, Ana; Van Waeyenberge, Elisa

Abstract

The 2015 World Development Report, Mind Society and Behaviour (World Bank, 2015), seeks a redesign of development policy on the basis of insights emerging from behavioural economics. This paper offers a critical assessment of the Report across four dimensions. First, it situates the Report within the broader and evolving knowledge role of the Bank. Second, the paper locates the Report in the context of the evolution of economics as a discipline and how this informs the evolution of the Bank’s development economics. Third, the Report is critically assessed for its narrow take on behavioural economics itself. Finally, the practical significance of the promotion of behavioural economics is considered through reference to its use in interventions in health in general and in response to HIV/AIDS in particular. It is argued that the Report suggests a dramatic and flawed reduction of what development is about, in that it foregoes any analysis of the structural problems facing developing countries and fails to propose major reforms to tackle these.

Citation

Fine, B., Johnston, D., Santos, A., & Van Waeyenberge, E. (2016). Nudging or Fudging: The World Development Report 2015. Development and Change, 47(4), 640-663. https://doi.org/10.1111/dech.12240

• Journal Article Type: Article
• Acceptance Date: Jan 25, 2016
• Online Publication Date: May 27, 2016
• Publication Date: May 27, 2016
• Deposit Date: Feb 17, 2016
• Publicly Available Date: Jun 9, 2016
• Journal: Development and Change
• Print ISSN: 0012-155X
• Electronic ISSN: 1467-7660
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 47
• Issue: 4
• Pages: 640-663
• DOI: https://doi.org/10.1111/dech.12240
• Keywords: behavioural economics, cash transfers, economics imperialism, nudge, World Bank, World Development Report