IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

World Bank Independence: A Model and Statistical Analysis of US Influence

  • Robert K. Fleck
  • Christopher Kilby

This paper develops a model to test whether World Bank lending caters to US interests. We use country-level panel data to examine the geographic distribution of World Bank lending to 110 countries from 1968 to 2002. After controlling for country characteristics expected to influence the distribution of lending in a manner consistent with the World Bank's charter and stated allocation mechanisms, we introduce variables reflecting US interests. The empirical results are consistent with a significant US influence, but one which varies across presidential administrations. These findings have important implications because donor influence may reduce the credibility, and hence the development effectiveness, of multilateral aid organizations. Copyright � 2006 The Authors; Journal compilation � 2006 Blackwell Publishing Ltd.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9361.2006.00314.x
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 10 (2006)
Issue (Month): 2 (05)
Pages: 224-240

as
in new window

Handle: RePEc:bla:rdevec:v:10:y:2006:i:2:p:224-240
Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669

Order Information: Web: http://www.blackwellpublishing.com/subs.asp?ref=1363-6669

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Axel Dreher & Nathan Jensen, 2003. "Independent Actor or Agent? An Empirical Analysis of the impact of US interests on IMF Conditions," International Finance 0310004, EconWPA, revised 08 Jan 2004.
  2. Frey, Bruno S. & Schneider, Friedrich, 1986. "Competing models of international lending activity," Journal of Development Economics, Elsevier, vol. 20(2), pages 225-245, March.
  3. Hansen, Henrik & Tarp, Finn, 2000. "Aid and Growth Regressions," MPRA Paper 62288, University Library of Munich, Germany.
  4. Kilby, C., 1995. "Supervision and Performance : The Case of World Bank Projects," Discussion Paper 1995-45, Tilburg University, Center for Economic Research.
  5. Kanbur, Ravi, 2005. "Reforming the Formula: A Modest Proposal for Introducing Development Outcomes in IDA Allocation Procedures," CEPR Discussion Papers 4971, C.E.P.R. Discussion Papers.
  6. Dudley, Leonard & Montmarquette, Claude, 1976. "A Model of the Supply of Bilateral Foreign Aid," American Economic Review, American Economic Association, vol. 66(1), pages 132-42, March.
  7. 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, 05.
  8. Dollar, David & Alesina, Alberto, 2000. "Who Gives Foreign Aid to Whom and Why?," Scholarly Articles 4553020, Harvard University Department of Economics.
  9. David Roodman, 2004. "The Anarchy of Numbers: Aid, Development, and Cross-country Empirics," Development and Comp Systems 0412003, EconWPA.
  10. Shapouri, Shahla, 1990. "Food Aid: Motivation and Allocation Criteria," Foreign Agricultural Economic Report (FAER) 147994, United States Department of Agriculture, Economic Research Service.
  11. Maizels, Alfred & Nissanke, Machiko K., 1984. "Motivations for aid to developing countries," World Development, Elsevier, vol. 12(9), pages 879-900, September.
  12. Alesina, Alberto & Weder, Beatrice, 2002. "Do Corrupt Governments Receive Less Foreign Aid?," Scholarly Articles 4553011, Harvard University Department of Economics.
  13. Dani Rodrik, 1995. "Why is there Multilateral Lending?," NBER Working Papers 5160, National Bureau of Economic Research, Inc.
  14. Charles C. Chang & Eduardo Fernández-Arias & Luis Serven, 1998. "Measuring Aid Flows: A New Approach," Research Department Publications 4146, Inter-American Development Bank, Research Department.
  15. Enzo Grilli & Markus Riess, 1992. "EC aid to associated countries: distribution and determinants," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 128(2), pages 202-220, June.
  16. Hansen, Henrik & Tarp, Finn, 1999. "Aid Effectiveness Disputed," MPRA Paper 62290, University Library of Munich, Germany.
  17. Kilby, Christopher, 2005. "Donor Influence in MDBs: the Case of the Asian Development Bank," Vassar College Department of Economics Working Paper Series 70, Vassar College Department of Economics.
  18. Robert J Barro & Jong-Wha Lee, 2003. "IMF Programs: Who Is Chosen and What Are the Effects?," Departmental Working Papers 2003-09, The Australian National University, Arndt-Corden Department of Economics.
  19. Fleck, Robert K. & Kilby, Christopher & Fleck, Robert K., 1998. "Foreign Aid and Domestic Politics: Voting in Congress and the Allocation of USAID Contracts Across Congressional Districts," Vassar College Department of Economics Working Paper Series 44, Vassar College Department of Economics, revised Dec 1999.
  20. Noël, Alain & Thérien, Jean-Philippe, 1995. "From domestic to international justice: the welfare state and foreign aid," International Organization, Cambridge University Press, vol. 49(03), pages 523-553, June.
  21. Cline, William R. & Sargen, Nicholas P., 1975. "Performance criteria and multilateral aid allocation," World Development, Elsevier, vol. 3(6), pages 383-391, June.
  22. Rao, J. Mohan, 1994. "Judging givers: Equity and scale in aid allocation," World Development, Elsevier, vol. 22(10), pages 1579-1584, October.
  23. William Easterly & Ross Levine & David Roodman, 2004. "Aid, Policies, and Growth: Comment," American Economic Review, American Economic Association, vol. 94(3), pages 774-780, June.
  24. Boone, Peter, 1996. "Politics and the effectiveness of foreign aid," European Economic Review, Elsevier, vol. 40(2), pages 289-329, February.
  25. Ball, Richard & Johnson, Christopher, 1996. "Political, Economic, and Humanitarian Motivations for PL 480 Food Aid: Evidence from Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 44(3), pages 515-37, April.
  26. Ascher, William, 1983. "New development approaches and the adaptability of international agencies: the case of the World Bank," International Organization, Cambridge University Press, vol. 37(03), pages 415-439, June.
  27. Thomas Barnebeck Andersen & Henrik Hansen & Thomas Markussen, 2006. "US politics and World Bank IDA-lending," Journal of Development Studies, Taylor & Francis Journals, vol. 42(5), pages 772-794.
  28. William Easterly, 2003. "Can Foreign Aid Buy Growth?," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 23-48, Summer.
  29. Mosley, Paul, 1985. "The Political Economy of Foreign Aid: A Model of the Market for a Public Good," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 373-93, January.
  30. Krasner, Stephen D., 1981. "Power structures and regional development banks," International Organization, Cambridge University Press, vol. 35(02), pages 303-328, March.
  31. Clark, Don P, 1991. "Trade versus Aid: Distributions of Third World Development Assistance," Economic Development and Cultural Change, University of Chicago Press, vol. 39(4), pages 829-37, July.
  32. Carl-Johan Dalgaard & Henrik Hansen & Finn Tarp, 2004. "On The Empirics of Foreign Aid and Growth," Economic Journal, Royal Economic Society, vol. 114(496), pages F191-F216, 06.
  33. Michael Clemens & Steven Radelet & Rikhil Bhavnani, 2004. "Counting Chickens When They Hatch: The Short-term Effect of Aid on Growth," Working Papers 44, Center for Global Development.
  34. McGillivray, Mark, 1989. "The allocation of aid among developing countries: A multi-donor analysis using a per capita aid index," World Development, Elsevier, vol. 17(4), pages 561-568, April.
  35. John Hickman, 1993. "Cue Taking and the Distribution of Japanese ODA among African Countries," African Development Review, African Development Bank, vol. 5(1), pages 62-69.
  36. Craig Burnside & David Dollar, 2004. "Aid, Policies, and Growth: Reply," American Economic Review, American Economic Association, vol. 94(3), pages 781-784, June.
  37. Hoadley, J. Stephen, 1980. "Small states as aid donors," International Organization, Cambridge University Press, vol. 34(01), pages 121-137, December.
  38. Trumbull, William N & Wall, Howard J, 1994. "Estimating Aid-Allocation Criteria with Panel Data," Economic Journal, Royal Economic Society, vol. 104(425), pages 876-82, July.
  39. Gounder, Rukmani, 1994. "Empirical results of aid motivations: Australia's bilateral aid program," World Development, Elsevier, vol. 22(1), pages 99-113, January.
  40. repec:cup:cbooks:9780521808187 is not listed on IDEAS
  41. repec:cup:cbooks:9780521790956 is not listed on IDEAS
  42. Graham Bird & Dane Rowlands, 2001. "IMF lending: how is it affected by economic, political and institutional factors?," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 4(3), pages 243-270.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:10:y:2006:i:2:p:224-240. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)

or (Christopher F. Baum)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.