Prosocial Project Management in Conflict Areas

Armed conflicts, terrorism, and political instability disrupt the implementation of thousands of prosocial projects in the developing world. In this unstable, fast-paced environment, managers may need to change course and adapt projects to new circumstances. Could adaptive management be a solution? Leveraging a groundbreaking pilot run by the World Bank, we evaluate the performance of all 429 adaptive projects implemented between 1998 and 2013, when the Bank launched the “adaptable program loan.” Our study—covering 91 countries, 25 development sectors, and approximately $55 billion in funding resources—examines how armed conflict and adaptability influence project performance. We find that adaptability, reinforced by experience and learning, counteracts conflict’s negative effect on project performance. However, this moderating effect diminishes as project complexity increases and reverses in non-conflict areas due to cost overruns and overoptimistic formulations .