Applied Psychology, Development Banking, and Economic Development in Latin America Status Report on an Attempt to Build a National System of Development Banks Classic Reprint

Building a national system of development banks through hands‑on training and institutional change.
This report documents MIT’s Development Banking Project in Latin America, showing how strengthening financial institutions can drive economic development. It highlights practical efforts to help banks become more capable and self‑managing, rather than tightly controlled from above.

In clear, concrete terms, the book describes:
- A cross‑institution collaboration that links bank operations with university expertise to transfer knowledge where it matters.
- A two‑month training course for regional banks, focused on loan appraisal, control procedures, and working as a team, with return‑to‑work strategies to ensure real use of new skills.
- Basic work on a management information and control system, plus organizational development initiatives that emphasize face‑to‑face communication, upward influence, and career rewards for development professionals.
- Ongoing research and feedback loops designed to improve training, measure impact, and guide future program design.
- A broader view of the long‑term goal: a coordinated system of development banks staffed by technically competent people sharing information to achieve common objectives.

What you’ll gain from reading:
- Insights into how institutional work can complement field efforts to foster growth.
- Examples of how training and evaluation can shape bank practices and policy.
- Perspectives on how managerial beliefs and motivation relate to learning in development finance.

Ideal for readers interested in economic development, banking reform, or cross‑cultural approaches to organizational change. It’s a practical look at how theory meets field work in building development finance capacity.