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World Bank Environmental Reform: Revisiting Lessons from Agency Theory

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  • Gutner, Tamar

Abstract

Daniel Nielson and Michael Tierney's article, “Delegation to International Organizations: Agency Theory and World Bank Environmental Reform†(International Organization, Spring 2003), makes a strong argument for ways in which principal-agent (P-A) models advance theoretical explanations of the behavior and performance of international organizations (IOs). Most IOs suffer from widely recognized gaps between their mandates and their performance, gaps not well explained by the major theories in our field. P-A models are premised on the assumption that performance problems naturally arise when one actor (the principal) delegates to another actor (the agent) the authority to act in the former's interests. The models seek to explain why and how the divergence of interests between the two parties may result in the agent's actions differing from the principal's intentions, how agents may be better controlled, and the costs of doing so.I would like to thank Barbara Connolly, Martha Finnemore, Jeffry Frieden, Dan Guttman, Patrick Jackson, Carmela Lutmar, and Melissa Moye for helpful comments.

Suggested Citation

  • Gutner, Tamar, 2005. "World Bank Environmental Reform: Revisiting Lessons from Agency Theory," International Organization, Cambridge University Press, vol. 59(3), pages 773-783, July.
    • Handle: RePEc:cup:intorg:v:59:y:2005:i:03:p:773-783_05
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    Cited by:

    1. Martin Koch, 2012. "International Organizations in Development and Global Inequality: the Example of the World Bank's Pension Policy," WIDER Working Paper Series wp-2012-103, World Institute for Development Economic Research (UNU-WIDER).
    2. Alexandra Lindenthal & Martin Koch, 2013. "The Bretton Woods Institutions and the Environment: Organizational Learning within the World Bank and the International Monetary Fund (IMF)," Administrative Sciences, MDPI, vol. 3(4), pages 1-36, October.
    3. Koch, Martin, 2012. "International Organizations in Development and Global Inequality: The Example of the World Bank's Pension Policy," WIDER Working Paper Series 103, World Institute for Development Economic Research (UNU-WIDER).
    4. Andonova, Liliana B. & Piselli, Dario, 2022. "Transnational partnerships, domestic institutions, and sustainable development. The case of Brazil and the Amazon Region Protected Areas program," World Development, Elsevier, vol. 157(C).
    5. Ralph Luken, 2009. "Greening an international organization: UNIDO’s strategic responses," The Review of International Organizations, Springer, vol. 4(2), pages 159-184, June.
    6. Christopher Marcoux & Bradley C. Parks & Christian M. Peratsakis & Timmons Roberts & Michael J. Tierney, 2013. "Environmental and Climate Finance in a New World: How Past Environmental Aid Allocation Impacts Future Climate Aid," WIDER Working Paper Series wp-2013-128, World Institute for Development Economic Research (UNU-WIDER).
    7. Axel Michaelowa & Katharina Michaelowa, 2011. "Climate business for poverty reduction? The role of the World Bank," The Review of International Organizations, Springer, vol. 6(3), pages 259-286, September.
    8. Elena V McLean, 2015. "A strategic theory of international environmental assistance," Journal of Theoretical Politics, , vol. 27(2), pages 324-347, April.
    9. Marcoux, Christopher & Parks, Bradley C. & Peratsakis, Christian M. & Roberts, J. Timmons & Tierney, Michael J., 2013. "Environmental and Climate Finance in a New World: How Past Environmental Aid Allocation Impacts Future Climate Aid," WIDER Working Paper Series 128, World Institute for Development Economic Research (UNU-WIDER).

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