From the perspective of World Bank, NIE will be able to solve 2 problems which lay in credible commitments and remedy (Thorp 1998). With the help of NIE since its emergence, the World Bank has been able to theoretically reconstruct its agenda which was originally 15 years old focusing on public sector firms’ privatization and contractual management.
Therefore, it makes sense to argue that the World Bank used the theory of new institutional economics in a selective manner and strategic manner not for re-thinking or re-evaluating the agenda but for buttressing the current priorities in policies (Moore 1966). This can be proved from the following perspectives:
In the beginning of 1990, the theory of institutional economics was used by the World Bank for reconstructing the items of agenda, like governance and power devolution and also for providing the appearance and emergence of ex post as called by World Bank’s president, Wolfensohn as the institutional approach of micro-analytical framework (James et al 1984).
This technique was easily applied by the bank in order to focus on the economic variant theory of NIE by completely depending over the core neo-classical economic elements.
Secondly, facing problems such as capitalism in society and ethnic diversity, institutions were used by the bank for explaining that exceptionalism is noteworthy for those regions which adjusted poorly (Lewis 2004).
Thirdly, through critic’s language adoption, the bank disarmed cleverly the opposition within compromising pretence (Peter 2011).
According to an epigraph published by the World Bank sponsors, NIE tools help in filling the gap within that which is acknowledged as a safe approach. In the perspective of World Bank, addition of such a dimension can help in betterment of results originally poorly delivered under the narrow consensus of Washington (Khan 1995).