473 Toward Democracy: A Critique of a World Bank Loan to the United Mexican States Jayson W. Richardson Abstract In 2002 the World Bank issued a US$300 million loan to Mexico to finance an education reform project. The loan is the second phase of a three-part Adaptable Program Loan (APL). A brief descrip- tion of the 136-page World Bank reform project is initially detailed and contrasted with a historical perspective. The Multiple Streams Model is used to determine why this education reform has come to fruition. Finally, the Frank Model is used to assess viability of this phase of the APL. It is concluded that this loan takes great national steps toward modernization, decentralization, and democratization. The adaptability of the loan is quite evident and proactive. Success of this project is promising, but the World Bank must not forget the cultural needs of the indigenous peoples. On February 21, 2002, the World Bank issued a project appraisal document titled “Mexico—Basic Education Development Phase II.” This document outlined a two- year, US$300 million loan used to finance an education reform project. The loan was approved in March 2002 as the second phase of a three-part Adaptable Program Loan (APL). A brief description of the 136-page World Bank reform project is initially detailed and contrasted with a historical perspective. The Multi- ple Streams Model is used to determine why this education reform has come to fruition. Finally, the Frank Model is used to assess viability of this phase of the APL. Phase II (APL2) which began in August 31, 2001 had a closing date of June 30, 2004. The main goal of this three-part project is to support the government’s National Education Program (PNE). Phase I ( June 15, 1998, to December 31, 2001) was successful in improving supervision and school-based management as well as increasing planning and evaluation capacities at the federal and state levels. APL2 “seeks to rationalize and integrate the various compensatory programs into a more decentralized environment, both in terms of organization and financing” (World Bank, 2002, p. 4). There were two main components of APL2: Improving the quality of initial and basic education and strengthening institutional capacities at federal and state levels. Phase III ( January 1, 2004, to June 30, 2006) will fine- tune “basic education services provision mechanisms based on a more fully devel- oped decentralization model” (World Bank, 2001, p. 2). In sum, APL2 sought to strengthen existing efforts to decentralize the education system in Mexico. Component one of APL2 consisted of five objectives. The first was to expand improvements of infrastructure, including rehabilitating and replacing physical facilities and providing school furniture. The second objective was to improve didactic materials to increase participation in the initial education program. The third objective was to provide for teacher training. The forth objective was to strengthen school management at the preschool and primary levels. The final objective was to improve school supervision. The second component consisted of six objectives. The first objective was to con- solidate the national education evaluation system. The second objective was to con- Review of Policy Research, Volume 22, Number 4 (2005) © 2005 by The Policy Studies Organization. All rights reserved.