The origins of the World Bank program in Vietnam have shaped its special nature (and some would say its success).1
The first formal meeting with President McNamara (former US Secretary of Defense) in 1976 symbolized in a very personal way the hoped-for shift to post-war reconstruction and development. But, while the World Bank responded with an economic mission and one irrigation credit, the relationship was soon disrupted again by Vietnam’s involvement with Cambodia. The resulting US-led embargo prevented any new work in Vietnam for a decade. When the Bank resumed contact in 1988, Vietnam was still a very poor country. Disillusionment with the results of a centrally-planned economy led to
some experimentation with market mechanisms. But more than three decades of war and isolation had left the country desperate for n ew ideas on how to stimulate production and reduce poverty.
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