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Principals and Interests: Common Agency and Multilateral Development Bank Lending

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International Development and Aid International Relations and Foreign Policy Political Influence and Corporate Strategies

Abstract

Are IOs accountable to their member states? There are good reasons to think that they may not be. We extend and apply agency theory to account for divergence between member-country environmental preferences and lending behavior at the multilateral development banks (MDBs). We treat governments in international organizations as members of a collective principal, an understudied concept in political science. A collective principal must overcome collective-action problems before and while delegating. If voting rules within MDBs are efficacious, then MDB behavior will be responsive to changes in the preferences of the winning coalition on the MDB board. We address such claims theoretically and statistically with a sample of more than 7,500 loans

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References

1966The Logic of Collective Action: Public Goods and the Theory of Groups.2003The Logic of Political Survival 1984After Hegemony: Cooperation and Discord in the World Political Economy 1975Congress: The Electoral Connection, by David R. Mayhew 1938A Note on the Pure Theory of Consumer's Behaviour 1999The Politics, Power, and Pathologies of International Organizations 1972Essence of Decision: Explaining the Cuban Missile Crisis 2017The halse Promise of International Institutions

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2005Theory, Data, and Hypothesis Testing: World Bank Environmental Reform Redux 2018Greening Development Lending in the Americas: Trends and Determinants 2010Tying the Hands of its Masters? Interest Coalitions and Multilateral Aid Allocation in the European Union

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