IDEAS home Printed from https://ideas.repec.org/a/bla/glopol/v16y2025i2p258-265.html

Side Payments in World Politics: Theory and Practice

Author

Listed:
  • Ethan B. Kapstein

Abstract

Scholars of world politics frequently highlight the importance of side payments in promoting international cooperation across a broad array of issue areas, from military alliances to environmental agreements. However, in order to be effective, side payments must be credible, meaning that they require the parties to make “binding agreements.” But what does it mean to make a “binding agreement” in the context of world politics? How can such agreements be enforced? The purpose of this article is to address several outstanding issues in the conceptualization of side payments in the hope of defining some scope conditions under which such payments are most likely to promote cooperation.

Suggested Citation

  • Ethan B. Kapstein, 2025. "Side Payments in World Politics: Theory and Practice," Global Policy, London School of Economics and Political Science, vol. 16(2), pages 258-265, May.
  • Handle: RePEc:bla:glopol:v:16:y:2025:i:2:p:258-265
    DOI: 10.1111/1758-5899.70022
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1758-5899.70022
    Download Restriction: no

    File URL: https://libkey.io/10.1111/1758-5899.70022?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ordeshook,Peter C., 1986. "Game Theory and Political Theory," Cambridge Books, Cambridge University Press, number 9780521315937.
    2. Tollison, Robert D. & Willett, Thomas D., 1979. "An economic theory of mutually advantageous issue linkages in international negotiations," International Organization, Cambridge University Press, vol. 33(4), pages 425-449, October.
    3. Barrett, Scott, 2005. "Environment and Statecraft: The Strategy of Environmental Treaty-Making," OUP Catalogue, Oxford University Press, number 9780199286096.
    4. Bård Harstad, 2007. "Harmonization and Side Payments in Political Cooperation," American Economic Review, American Economic Association, vol. 97(3), pages 871-889, June.
    5. Leeds, Brett Ashley, 2003. "Alliance Reliability in Times of War: Explaining State Decisions to Violate Treaties," International Organization, Cambridge University Press, vol. 57(4), pages 801-827, October.
    6. Baccini, Leonardo & Urpelainen, Johannes, 2012. "Strategic side payments: preferential trading agreements, economic reform, and foreign aid," LSE Research Online Documents on Economics 45057, London School of Economics and Political Science, LSE Library.
    7. Gregory F. Nemet & Peter Braden & Ed Cubero & Bickey Rimal, 2014. "Four decades of multiyear targets in energy policy: aspirations or credible commitments?," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 3(5), pages 522-533, September.
    Full references (including those not matched with items on IDEAS)

    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. Paul Poast, 2013. "Issue linkage and international cooperation: An empirical investigation," Conflict Management and Peace Science, Peace Science Society (International), vol. 30(3), pages 286-303, July.
    2. Douglas M. Gibler, 2008. "The Costs of Reneging," Journal of Conflict Resolution, Peace Science Society (International), vol. 52(3), pages 426-454, June.
    3. Peter J. Coughlin, 2015. "Probabilistic voting in models of electoral competition," Chapters, in: Jac C. Heckelman & Nicholas R. Miller (ed.), Handbook of Social Choice and Voting, chapter 13, pages 218-234, Edward Elgar Publishing.
    4. Fikayo Akeredolu, 2026. "Principal–Agent Theory and Results-Based Climate Finance: A Review of Lessons from the World Bank's Initiative for Sustainable Forest Landscapes," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(2), pages 8018-8027, February.
    5. Cai, Dapeng & Jørgensen, Jan Guldager, 2017. "Mutual Recognition for Sale: International Bargaining over Product Standards," Discussion Papers on Economics 1/2017, University of Southern Denmark, Department of Economics.
    6. Donal G. Saari & Katri K. Sieberg, 1999. "Some Surprising Properties of Power Indices," Discussion Papers 1271, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    7. Philippe De Donder & Michel Le Breton & Eugenio Peluso, 2012. "Majority Voting in Multidimensional Policy Spaces: Kramer–Shepsle versus Stackelberg," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 14(6), pages 879-909, December.
    8. Arhan Ertan & Talbot Page & Louis Putterman, 2005. "Can Endogenously Chosen Institutions Mitigate the Free-Rider Problem and Reduce Perverse Punishment?," Working Papers 2005-13, Brown University, Department of Economics.
    9. Alejandro Quiroz Flores, 2011. "Alliances as Contiguity in Spatial Models of Military Expenditures," Conflict Management and Peace Science, Peace Science Society (International), vol. 28(4), pages 402-418, September.
    10. Matthias Mader & Moritz Neubert & Felix Münchow & Stephanie C Hofmann & Harald Schoen & Konstantin Gavras, 2024. "Crumbling in the face of cost? How cost considerations affect public support for European security and defence cooperation," European Union Politics, , vol. 25(3), pages 483-503, September.
    11. Raimbault, Juste & Le Néchet, Florent, 2021. "Introducing endogenous transport provision in a LUTI model to explore polycentric governance systems," Journal of Transport Geography, Elsevier, vol. 94(C).
    12. Alesina, A. & Rosenthal, H., 1989. "Moderating Elections," Working papers 537, Massachusetts Institute of Technology (MIT), Department of Economics.
    13. Itay Fischhendler & Eran Feitelson & David Eaton, 2004. "The Short-Term and Long-Term Ramifications of Linkages Involving Natural Resources: The US – Mexico Transboundary Water Case," Environment and Planning C, , vol. 22(5), pages 633-650, October.
    14. Raouf Boucekkine & Giorgio Fabbri & Salvatore Federico & Fausto Gozzi & Ted Loch-Temzelides & Cristiano Ricci, 2025. "Differential Climate Games with Heterogenous Players," Working Papers 2025-04, Grenoble Applied Economics Laboratory (GAEL).
    15. William D. Nordhaus, 1989. "Alternative Approaches to the Political Business Cycle," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(2), pages 1-68.
    16. Charles H. Stewart III, 1991. "The Politics of Tax Reform in the 1980s," NBER Chapters, in: Politics and Economics in the Eighties, pages 143-174, National Bureau of Economic Research, Inc.
    17. Haufler, Andreas & Lülfesmann, Christoph, 2015. "Reforming an asymmetric union: On the virtues of dual tier capital taxation," Journal of Public Economics, Elsevier, vol. 125(C), pages 116-127.
    18. A. M. A. van Deemen, 1991. "Coalition Formation in Centralized Policy Games," Journal of Theoretical Politics, , vol. 3(2), pages 139-161, April.
    19. Carreras, Francesc & Freixas, Josep, 1996. "Complete simple games," Mathematical Social Sciences, Elsevier, vol. 32(2), pages 139-155, October.
    20. Kolcava, Dennis & Nguyen, Quynh & Bernauer, Thomas, 2019. "Does trade liberalization lead to environmental burden shifting in the global economy?," Ecological Economics, Elsevier, vol. 163(C), pages 98-112.

    More about this item

    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:bla:glopol:v:16:y:2025:i:2:p:258-265. 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.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.