Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue

Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue Description

When the World Bank signed an agreement with the government of Peru in December, 1997 to provide a $22.5 million loan to help reform the country's antiquated and corrupt judicial system, the Bank knew it faced risks. Peru's President Alberto Fujimori was under fire and observers considered it possible that, rather than exhibiting real commitment to reform, the government may have been seeking the loan chiefly to lend a veneer of legitimacy to measures that in reality reduced judicial independence and concentrated more power in the executive. On balance, however, Bank officials who had to make the decision on whether to proceed with the agreement believed it offered a rare opportunity to address a variety of longstanding ills-including limited access to the justice system, a crumbling infrastructure, and inadequate training of judges and prosecutors. But just three months after the agreement had been signed, Peru's Congress-dominated by members loyal to the President-passed a measure which led Bank officials to question the good faith of the government. The new law limited the powers of one of the pillars of the loan agreement-the National Council of Magistrates, an independent entity mandated to , ratify and remove judges and prosecutors. The Council's members resigned en masse and, in response, the Bank postponed the effective date of the judicial reform loan by six months-halting any disbursement of funds. But in the days following the announcement, Peru's government put increasing pressure on the Bank to change its mind-and finally summoned the Bank's country director for Peru to a personal meeting with President Fujimori. The country director would have to decide whether to stick with the loan postponement-and, more broadly, take stock of what was really going on in Peru. Would the loan help a government sincerely embarked on reform? Or might it simply abet a government bent on subverting the judiciary to further its own political goals? HKS Case Number 1779.0

Case Description Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue

Strategic Managment Tools Used in Case Study Analysis of Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue

STEP 1. Problem Identification in Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study

STEP 6. Recommendations Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study

STEP 7. Basis of Recommendations for Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study

Case Analysis of Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue

Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue is a Harvard Business (HBR) Case Study on Global Business , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Global Business, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Global Business Solutions

In the Texas Business School, Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue

Step 1 – Problem Identification of Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue - Harvard Business School Case Study

The first step to solve HBR Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Judicial Loan is facing right now. Even though the problem statement is essentially – “Global Business” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Judicial Loan, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue.

The external environment analysis of Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study. PESTEL analysis of " Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue

To do comprehensive PESTEL analysis of case study – Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue

Government policies have significant impact on the business environment of any country. The firm in “ Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Judicial Loan is operating, firms are required to store customer data within the premises of the country. Judicial Loan needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Judicial Loan in case study Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Judicial Loan in case study “ Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Judicial Loan in case study “ Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Judicial Loan can compete against other competitors.

Government Scheme & Subsidies Impact on Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Judicial Loan needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue

Social Factors that Impact Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue

Technological Factors that Impact Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue

Environmental Factors that Impact Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue

Legal Factors that Impact Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study. PESTEL analysis of " Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Aiding or Abetting? The World Bank and the 1997 Judicial Reform Project: Epilogue case study solution