Since the mid-1990s, the World Bank moved the reform agenda steadily from the centre to the states. Deterioration in fiscal discipline forced the states to launch fiscal and administrative reforms under the World Bank's structural adjustment lending. A few states introduced a number of policy initiatives under the conditional lending of the Bank. The relationship between states and the Bank provides a new lens to observe the influence and domination of the multilateral institution on policy formulation and administration in the changed political-economic context.
