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Choosing international organizations: When do states and the World Bank collaborate on environmental projects?

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  • Patrick Bayer
  • Christopher Marcoux
  • Johannes Urpelainen

Abstract

While international cooperation research emphasizes institutional design, states mostly interact with existing organizations. How do states choose organizations for cooperation? We develop a theory of agency choice for development projects, emphasizing the importance of domestic institutions, the scope of cooperation, and the resources of the implementing agency. If states are to cooperate with funding agencies that have abundant resources, such as the World Bank, they must accept more stringent conditions on project implementation. We argue states accept the stringent conditions that resourceful organizations demand if the public goods from project implementation are highly valuable. Empirically, this is the case for democratic states, large projects, and projects that produce national instead of global public goods. We test this theory using data on 2,882 Global Environment Facility (GEF) projects, 1991–2011. The GEF offers an ideal case because various implementing agencies are responsible for the actual projects. States implement projects in collaboration with the World Bank, which has the most expertise and resources among the GEF’s implementing agencies, if their regime type is democracy, the project size is large, and the benefits are primarily national. Qualitative evidence sheds light on causal mechanisms. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Patrick Bayer & Christopher Marcoux & Johannes Urpelainen, 2014. "Choosing international organizations: When do states and the World Bank collaborate on environmental projects?," The Review of International Organizations, Springer, vol. 9(4), pages 413-440, December.
    • Handle: RePEc:spr:revint:v:9:y:2014:i:4:p:413-440
    DOI: 10.1007/s11558-013-9184-y
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    Cited by:

    1. Axel Dreher & Vera Eichenauer & Kai Gehring & Vera Z. Eichenauer, 2013. "Geopolitics, Aid and Growth," CESifo Working Paper Series 4299, CESifo.
    2. 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.
    3. Axel Dreher & Vera Z Eichenauer & Kai Gehring, 2018. "Geopolitics, Aid, and Growth: The Impact of UN Security Council Membership on the Effectiveness of Aid," The World Bank Economic Review, World Bank, vol. 32(2), pages 268-286.

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    More about this item

    Keywords

    International organizations; International cooperation; Foreign aid; Environment; Donor-recipient interactions; Global Environment Facility; F55; F59; H87; Q56; Q58;
    All these keywords.

    JEL classification:

    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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