Information Technology in World Bank Lending: Increasing the Developmental Impact

The Bank has emerged as a major institutional investor in information technology applications in developing countries, as information technology transforms industries, services, and jobs. Currently, almost 90 percent of Bank lending operations contain information systems components. This study examines the increasing trend in Bank lending for information technology applications. It was prepared in response to a need to formally evaluate the effectiveness of technology lending and measure its impact. The study uses qualitative and quantitative data, and should be viewed as exploratory research or as a progress report since the field is developing continually. The study found there have been dramatic returns on investment in information technology applications. The most noticeably in the case of large automation projects. However, the Bank's lending practice still falls short of the potential in this field of development. The Bank has not been proactive in this area. As a result, information systems components are diffused over many projects; are often improvised, narrowly drawn and isolated from one another; and few realize how involved the Bank is in information technology. The study recommends solutions to both the reactive nature of the Bank's lending policy and methods of measuring the impact of information technology.