IDEAS home Printed from https://ideas.repec.org/p/vil/papers/28.html
   My bibliography  Save this paper

Do domestic politics shape U.S. influence in the World Bank?

Author

Abstract

This paper investigates whether U.S. presidential administrations choose to exert more influence over international financial institutions when they have less control over bilateral aid because of a divided U.S. government. Reexamining four empirical studies of the World Bank, we demonstrate that findings of U.S. influence are driven by the years in which the U.S. government was divided. This provides a richer picture of when and why the U.S. exerts influence in multilateral settings and an alternate explanation to persistent questions about the role of international organizations in the international political economy.

Suggested Citation

  • Erasmus Kersting & Christopher Kilby, 2016. "Do domestic politics shape U.S. influence in the World Bank?," Villanova School of Business Department of Economics and Statistics Working Paper Series 28, Villanova School of Business Department of Economics and Statistics.
  • Handle: RePEc:vil:papers:28
    as

    Download full text from publisher

    File URL: http://repec.library.villanova.edu/workingpapers/VSBEcon28.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Strand, Jonathan R. & Zappile, Tina M., 2015. "Always Vote for Principle, Though You May Vote Alone: Explaining United States Political Support for Multilateral Development Loans," World Development, Elsevier, vol. 72(C), pages 224-239.
    2. Brech, Viktor & Potrafke, Niklas, 2014. "Donor ideology and types of foreign aid," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 61-75.
    3. Dreher, Axel & Sturm, Jan-Egbert & Vreeland, James Raymond, 2009. "Development aid and international politics: Does membership on the UN Security Council influence World Bank decisions?," Journal of Development Economics, Elsevier, vol. 88(1), pages 1-18, January.
    4. Binder, Sarah A., 1999. "The Dynamics of Legislative Gridlock, 1947–96," American Political Science Review, Cambridge University Press, vol. 93(3), pages 519-533, September.
    5. Robert K. Fleck & Christopher Kilby, 2006. "How Do Political Changes Influence US Bilateral Aid Allocations? Evidence from Panel Data," Review of Development Economics, Wiley Blackwell, vol. 10(2), pages 210-223, May.
    6. Dreher, Axel & Sturm, Jan-Egbert & Vreeland, James Raymond, 2009. "Global horse trading: IMF loans for votes in the United Nations Security Council," European Economic Review, Elsevier, vol. 53(7), pages 742-757, October.
    7. Kelly M. Jones, 2015. "Contraceptive Supply and Fertility Outcomes: Evidence from Ghana," Economic Development and Cultural Change, University of Chicago Press, vol. 64(1), pages 31-69.
    8. Vreeland,James Raymond & Dreher,Axel, 2014. "The Political Economy of the United Nations Security Council," Cambridge Books, Cambridge University Press, number 9780521740067, January.
    9. Fleck, Robert K. & Kilby, Christopher, 2010. "Changing aid regimes? U.S. foreign aid from the Cold War to the War on Terror," Journal of Development Economics, Elsevier, vol. 91(2), pages 185-197, March.
    10. Michael Faye & Paul Niehaus, 2012. "Political Aid Cycles," American Economic Review, American Economic Association, vol. 102(7), pages 3516-3530, December.
    11. Helen V. Milner & Dustin H. Tingley, 2010. "The Political Economy Of U.S. Foreign Aid: American Legislators And The Domestic Politics Of Aid," Economics and Politics, Wiley Blackwell, vol. 22(2), pages 200-232, July.
    12. Barry Weingast, 1984. "The congressional-bureaucratic system: a principal agent perspective (with applications to the SEC)," Public Choice, Springer, vol. 44(1), pages 147-191, January.
    13. Kilby, Christopher, 2013. "The political economy of project preparation: An empirical analysis of World Bank projects," Journal of Development Economics, Elsevier, vol. 105(C), pages 211-225.
    14. Helen Milner & Dustin Tingley, 2013. "The choice for multilateralism: Foreign aid and American foreign policy," The Review of International Organizations, Springer, vol. 8(3), pages 313-341, September.
    15. Kilby, Christopher, 2015. "Assessing the impact of World Bank preparation on project outcomes," Journal of Development Economics, Elsevier, vol. 115(C), pages 111-123.
    16. Christopher Kilby, 2013. "An Empirical Assessment of Informal Influence in the World Bank," Economic Development and Cultural Change, University of Chicago Press, vol. 61(2), pages 431-464.
    17. Dreher, Axel & Lang, Valentin & Rosendorff, B. Peter & Vreeland, James Raymond, 2018. "Buying Votes and International Organizations: The Dirty Work-Hypothesis," CEPR Discussion Papers 13290, C.E.P.R. Discussion Papers.
    18. Niklas Potrafke, 2018. "Government ideology and economic policy-making in the United States—a survey," Public Choice, Springer, vol. 174(1), pages 145-207, January.
    19. Bernhard Reinsberg, 2017. "Organizational reform and the rise of trust funds: Lessons from the World Bank," The Review of International Organizations, Springer, vol. 12(2), pages 199-226, June.
    20. Kilby, Christopher, 2009. "The political economy of conditionality: An empirical analysis of World Bank loan disbursements," Journal of Development Economics, Elsevier, vol. 89(1), pages 51-61, May.
    21. Markus Goldstein & Todd Moss, 2005. "Compassionate conservatives or conservative compassionates? US political parties and bilateral foreign assistance to Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 41(7), pages 1288-1302.
    22. Christopher Kilby & Katharina Michaelowa, 2019. "What Influences World Bank Project Evaluations?," Springer Books, in: Nabamita Dutta & Claudia R. Williamson (ed.), Lessons on Foreign Aid and Economic Development, chapter 0, pages 109-150, Springer.
    23. Tingley, Dustin, 2010. "Donors and domestic politics: Political influences on foreign aid effort," The Quarterly Review of Economics and Finance, Elsevier, vol. 50(1), pages 40-49, February.
    24. Andersen, Thomas Barnebeck & Harr, Thomas & Tarp, Finn, 2006. "On US politics and IMF lending," European Economic Review, Elsevier, vol. 50(7), pages 1843-1862, October.
    25. Putnam, Robert D., 1988. "Diplomacy and domestic politics: the logic of two-level games," International Organization, Cambridge University Press, vol. 42(3), pages 427-460, July.
    26. Kenneth W. Abbott & Duncan Snidal, 1998. "Why States Act through Formal International Organizations," Journal of Conflict Resolution, Peace Science Society (International), vol. 42(1), pages 3-32, February.
    27. Independent Evaluation Group, 2011. "Trust Fund Support for Development : An Evaluation of the World Bank's Trust Fund Portfolio," World Bank Publications - Books, The World Bank Group, number 21345, December.
    28. Vera Z. Eichenauer & Bernhard Reinsberg, 2017. "What determines earmarked funding to international development organizations? Evidence from the new multi-bi aid data," The Review of International Organizations, Springer, vol. 12(2), pages 171-197, June.
    29. Robert K. Fleck & Christopher Kilby, 2001. "Foreign Aid and Domestic Politics: Voting in Congress and the Allocation of USAID Contracts across Congressional Districts," Southern Economic Journal, John Wiley & Sons, vol. 67(3), pages 598-617, January.
    30. Milner, Helen V. & Tingley, Dustin H., 2011. "Who Supports Global Economic Engagement? The Sources of Preferences in American Foreign Economic Policy," International Organization, Cambridge University Press, vol. 65(1), pages 37-68, January.
    31. Roland Vaubel, 1986. "A public choice approach to international organization," Public Choice, Springer, vol. 51(1), pages 39-57, January.
    32. Ilyana Kuziemko & Eric Werker, 2006. "How Much Is a Seat on the Security Council Worth? Foreign Aid and Bribery at the United Nations," Journal of Political Economy, University of Chicago Press, vol. 114(5), pages 905-930, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kaya, Ayse & Kilby, Christopher & Kay, Jonathan, 2021. "Asian Infrastructure Investment Bank as an instrument for Chinese influence? Supplementary versus remedial multilateralism," World Development, Elsevier, vol. 145(C).
    2. Balázs Szent-Iványi & Bernhard Reinsberg & Simon Lightfoot, 2019. "Small Donors in World Politics: The Role of Trust Funds in the Foreign Aid Policies of Central and Eastern European Donors," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(3), pages 663-683, July.
    3. Erasmus Kersting & Christopher Kilby, 2019. "The rise of supplemental lending at the World Bank," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(4), pages 1655-1698, November.
    4. Axel Dreher & Katharina Michaelowa, 2008. "The political economy of international organizations," The Review of International Organizations, Springer, vol. 3(4), pages 331-334, December.
    5. Bernhard Reinsberg, 2017. "Xu, Jiajun. 2017. Beyond US Hegemony in International Development: The Contest for Influence at the World Bank. (Cambridge: Cambridge University Press)," The Review of International Organizations, Springer, vol. 12(3), pages 491-495, September.
    6. Christopher Kilby & Carolyn McWhirter, 2022. "The World Bank COVID-19 response: Politics as usual?," The Review of International Organizations, Springer, vol. 17(3), pages 627-656, July.
    7. Oliver Westerwinter & Kenneth W. Abbott & Thomas Biersteker, 2021. "Informal governance in world politics," The Review of International Organizations, Springer, vol. 16(1), pages 1-27, January.
    8. Haibo Ruan & Li Qiu & Jun Chen & Shuo Liu & Zhiyuan Ma, 2022. "Government Trust, Environmental Pollution Perception, and Environmental Governance Satisfaction," IJERPH, MDPI, vol. 19(16), pages 1-18, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erasmus Kersting & Christopher Kilby, 2019. "The rise of supplemental lending at the World Bank," Canadian Journal of Economics, Canadian Economics Association, vol. 52(4), pages 1655-1698, November.
    2. Axel Dreher & Katharina Michaelowa, 2008. "The political economy of international organizations," The Review of International Organizations, Springer, vol. 3(4), pages 331-334, December.
    3. Kersting, Erasmus K. & Kilby, Christopher, 2016. "With a little help from my friends: Global electioneering and World Bank lending," Journal of Development Economics, Elsevier, vol. 121(C), pages 153-165.
    4. Brech, Viktor & Potrafke, Niklas, 2014. "Donor ideology and types of foreign aid," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 61-75.
    5. Lang, Valentin F. & Presbitero, Andrea F., 2018. "Room for discretion? Biased decision-making in international financial institutions," Journal of Development Economics, Elsevier, vol. 130(C), pages 1-16.
    6. Angelika J. Budjan & Andreas Fuchs, 2021. "Democracy and Aid Donorship," American Economic Journal: Economic Policy, American Economic Association, vol. 13(4), pages 217-238, November.
    7. Maria Perrotta Berlin & Raj M. Desai & Anders Olofsgård, 2023. "Trading favors? UN Security Council membership and subnational favoritism in aid recipients," The Review of International Organizations, Springer, vol. 18(2), pages 237-258, April.
    8. James Vreeland, 2011. "Foreign aid and global governance: Buying Bretton Woods – the Swiss-bloc case," The Review of International Organizations, Springer, vol. 6(3), pages 369-391, September.
    9. Christopher Kilby & Carolyn McWhirter, 2022. "The World Bank COVID-19 response: Politics as usual?," The Review of International Organizations, Springer, vol. 17(3), pages 627-656, July.
    10. Axel Dreher & Vera Eichenauer & Kai Gehring & Vera Z. Eichenauer, 2013. "Geopolitics, Aid and Growth," CESifo Working Paper Series 4299, CESifo.
    11. Axel Dreher & Valentin F. Lang & Sebastian Ziaja, 2017. "Foreign Aid in Areas of Limited Statehood," CESifo Working Paper Series 6340, CESifo.
    12. Dreher, Axel & Lang, Valentin F. & Richert, Katharina, 2019. "The political economy of International Finance Corporation lending," Journal of Development Economics, Elsevier, vol. 140(C), pages 242-254.
    13. Kilby, Christopher, 2013. "The political economy of project preparation: An empirical analysis of World Bank projects," Journal of Development Economics, Elsevier, vol. 105(C), pages 211-225.
    14. repec:awi:wpaper:0575 is not listed on IDEAS
    15. Axel Dreher & Valentin F. Lang & B. Peter Rosendorff & James Raymond Vreeland, 2018. "Buying Votes and International Organizations: The Dirty Work-Hypothesis," CESifo Working Paper Series 7329, CESifo.
    16. Axel Dreher & Sarah Langlotz & Silvia Marchesi, 2017. "Information Transmission And Ownership Consolidation In Aid Programs," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1671-1688, October.
    17. Ariel Akerman & João Paulo Pessoa & Leonardo Weller, 2022. "The West’s Teeth: IMF conditionality during the Cold War," The World Economy, Wiley Blackwell, vol. 45(7), pages 2034-2051, July.
    18. Rudolph, Alexandra, 2017. "The concept of SDG-sensitive development cooperation: implications for OECD-DAC members," IDOS Discussion Papers 1/2017, German Institute of Development and Sustainability (IDOS).
    19. Bernhard REINSBERG, 2017. "The use of multi-bi aid by France in comparison with other donor countries," Working Paper 3c664604-b408-4a2c-bf46-5, Agence française de développement.
    20. repec:awi:wpaper:0604 is not listed on IDEAS
    21. Lauren L. Ferry & Emilie M. Hafner-Burton & Christina J. Schneider, 2020. "Catch me if you care: International development organizations and national corruption," The Review of International Organizations, Springer, vol. 15(4), pages 767-792, October.
    22. Axel Dreher & Peter Nunnenkamp & Maya Schmaljohann, 2015. "The Allocation of German Aid: Self-interest and Government Ideology," Economics and Politics, Wiley Blackwell, vol. 27(1), pages 160-184, March.

    More about this item

    Keywords

    World Bank; Divided Government; Geopolitics of Aid;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vil:papers:28. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christopher Kilby (email available below). General contact details of provider: https://edirc.repec.org/data/edvilus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.