Social Legitimacy and the World Bank

According to the Institutional Theory, organizations must have social legitimacy. It is defined by Hatch as being "the acceptance of the society in which they operate" (Hatch, 85). This social legitimacy is what allows the organization to continue to use resources provided by the environment. Hatch points out that this is especially true of organizations that receive public funds.

There was an interesting chance to see the process by which an organization tries to gain social legitimacy. President George W. Bush appointed his choice of nominee for the head of the World Bank. The World Bank is a multi-nation organization that provides funding to help developing countries and to alleviate the suffering of poverty. The United States appoints the head of the World Bank, but it must be approved by a board consisting of representitives from many member nations. The White House has launched a campaign to gain global social legitimacy for his choice, Paul Wolfowitz. President Bush called the French President as well as other European leaders to argue for his choice. Editorials have appeared in all major news sources across the globe as the legitimacy of this choice is discussed. Some allies such as the British and the Japanese have heartily accepted it, while others such as the French and some members within the UN do not. Each part of the environment is affected differently by this choice and thus worry about different aspects of it. Aljazeera is primarily concerned that Wolfowitz would be too pro-Israel. The trick with gaining social legitimacy for this choice of the leader of an organization is satisfying a number of different needs and desires by diverse parts of the environment. Since the environment is the entire global community, this is an extremely difficult, if not downright impossible task. The choice may gain institutional approval, that is to say Wolfowitz would be approved by the board, without ever gaining social legitimacy. If Wolfowitz fails to gain social legitmacy as an individual than that could have major implications for the social legitimacy of the World Bank as he assumes its leadership.

Wolfowitz and the White House have been stressing his experience and his strong belief in the nobility of the mission of the World Bank. This can be seen as a form of "rationalized myth". Paul Wolfowitz is primarily known as one of the leading advocates of the Iraqi war during his tenure as Deputy Secretary of Defense. This war, which is such a divisive issue throughout the world, is one of the reasons that it is such an uphill battle to gain social legitimacy for Wolfowitz. Rationalized myths can be used to justify intellectually a choice that is primarily based in emotional reasoning. His supporters will use rationalized myths as will he to show his experience and his belief in the work of the World Bank. Even if he were being rewarded for his support of the Iraqi war (and that is pure speculation on my part), they would mention other reasons for his appointment - this is the definition of a rationalized myth. Of course those who would defeat or oppose his appointment will use the same process. They may primarily oppose him because of his role in the Second Gulf War (and this is also largely based on speculation), but they will use other reasons when they voice their opposition. In order to deny him social legitimacy, those outside the organization will have to use their own rationalized myths.

This will be a fascinating process to watch in the next few weeks and see how those on both sides of the issues attempt to gain or deny social legitimacy for Paul Wolfowitz and ultimately in the next few years how this affects the social legitimacy of the World Bank, an organization that depends heavily on global social legitimacy.

Articles about Wolfowitz's appointment:

CNN (United States):
Bush's Wolfowitz's nod draws fire
Hostility, support for Wolfowitz

Financial Times (United Kingdom):
Europeans resigned to Wolfowitz appointment

London Times (United Kingdom):
Bush selects Iraq war architect to be new head of World Bank

Aljazeera (Middle East):
Choosing Wolfowitz definitely benefits Israel

International Herald Tribune:
European leaders grudgingly accept appointment

There are many more, but that is a small sampling.

Elizabeth Moreau