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An Obsolescing Bargain in Chad: Shifts in Leverage between the Government and the World Bank

Author

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  • Gould John A

    (Colorado College)

  • Winters Matthew S

    (Columbia University)

Abstract

This paper applies the insights of obsolescing bargaining theory to a situation in which a host country interacted with both multinational corporations and an international organization, the World Bank. Drawing on resource curse literature and the Rubinstein bargaining model, we demonstrate the continued usefulness of obsolescing bargaining theory by explaining why the World Bank had to renegotiate its initial bargain with Chad in the Chad-Cameroon Oil Pipeline Project. The paper explores how specific bargaining parameters changed over time in this case and suggests how resource curse dynamics and their impact on domestic politics might be particularly relevant for bargaining between host countries and international actors. The case study serves as a warning to international financial institutions and corporations alike with regard to the ways in which obsolescing bargains can arise in the contemporary global political-economy.

Suggested Citation

  • Gould John A & Winters Matthew S, 2007. "An Obsolescing Bargain in Chad: Shifts in Leverage between the Government and the World Bank," Business and Politics, De Gruyter, vol. 9(2), pages 1-36, September.
    • Handle: RePEc:bpj:buspol:v:9:y:2007:i:2:n:4
    DOI: 10.2202/1469-3569.1199
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    Cited by:

    1. Müllner, Jakob & Puck, Jonas, 2018. "Towards a holistic framework of MNE–state bargaining: A formal model and case-based analysis," Journal of World Business, Elsevier, vol. 53(1), pages 15-26.
    2. Clausen Fabian & Attaran Amir, 2011. "The Chad-Cameroon Pipeline Project--Assessing the World Bank's Failed Experiment to Direct Oil Revenues towards the Poor," The Law and Development Review, De Gruyter, vol. 4(1), pages 32-65, August.
    3. Simon Hartmann & Thomas Lindner & Jakob Müllner & Jonas Puck, 2022. "Beyond the nation-state: Anchoring supranational institutions in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1282-1306, August.
    4. Gamso, Jonas & Nelson, Roy C., 2019. "Does partnering with the World Bank shield investors from political risks in less developed countries?," Journal of World Business, Elsevier, vol. 54(5), pages 1-1.
    5. Vivoda Vlado, 2011. "Bargaining Model for the International Oil Industry," Business and Politics, De Gruyter, vol. 13(4), pages 1-36, December.

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