International Bureaucrats and Organizational Performance. Country-Specific Knowledge and Sectoral Knowledge in World Bank Projects

Abstract

Abstract International organizations (IOs) try to incorporate policy-specific best practices and country-specific knowledge to increase well-informed decision-making. However, the relative contribution of the two kinds of knowledge to organizational performance is insufficiently understood. The article addresses this gap by focusing on the role of staff in World Bank performance. It posits that country-specific knowledge, sectoral knowledge, and their combination positively contribute to World Bank projects. The argument is tested drawing on a novel database on the tenure, nationality, and educational background of World Bank Task Team Leaders. Three findings stand out. First, country-specific knowledge seems to matter on average, while sectoral knowledge does not. Second, there is some evidence that staff that combine both kinds of knowledge are empowered to make more positive contributions to performance. Third, the diversity and relevance of experience, not length of tenure, are associated with more success. The findings contribute to discussions on international bureaucracies by highlighting how differences between the knowledge of individual staff shape their decision-making and performance. IOs could better tap into the existing resources in their bureaucracies to enhance their performance by rotating staff less frequently between duty stations.