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The Political Economy of International Financial Institutions? Lending to Pakistan

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  • Anwar, Mumtaz

Abstract

This paper analyzes the determinants of international financial institutions (IFIs)'s lending decisions to Pakistan. At the example of three major IFIs, the World Bank, IMF and ADB, this paper suggests that political economic factors, notably bureaucratic interest of international civil servants and major shareholders' economic interest belong to the most relevant determinants of international lending. Pooled Tobit estimation analysis for the period ever since when these institutions established their lending instruments to developing countries, confirm this hypothesis. Recipients' need is shown to have some relevance as well but not as strong as bureaucratic interest. Further analysis suggests that IDA and ADB lending is more interest oriented than lending by the IBRD and IMF.

Suggested Citation

  • Anwar, Mumtaz, 2005. "The Political Economy of International Financial Institutions? Lending to Pakistan," HWWA Discussion Papers 338, Hamburg Institute of International Economics (HWWA).
    • Handle: RePEc:zbw:hwwadp:338
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    1. Farwa Sial & Juvaria Jafri & Abdul Khaliq, 2023. "Pakistan, China and the Structures of Debt Distress: Resisting Bretton Woods," Development and Change, International Institute of Social Studies, vol. 54(5), pages 1226-1263, September.
    2. Christopher Kilby, 2011. "Informal influence in the Asian Development Bank," The Review of International Organizations, Springer, vol. 6(3), pages 223-257, September.

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    More about this item

    Keywords

    Foreign aid; International organizations; bureaucracy;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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