World Bank Independence: A Model and Statistical Analysis of U.S. Influence

Robert K. Fleck · Christopher Paul Kilby

109 citations0/0 files storedRePEc: Research Papers in Economics

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Abstract

This paper develops a model to test whether World Bank lending caters to U.S. 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 U.S. interests. The empirical results are consistent with a significant U.S. 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.

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References

1996Politics and the effectiveness of foreign aid 2001Aid and growth regressions 2003Can Foreign Aid Buy Growth?2002Do Corrupt Governments Receive Less Foreign Aid?2004On the Empirics of Foreign Aid and Growth 2000Aid effectiveness disputed 2002IMF Programs: Who is Chosen and What Are the Effects?2007The Anarchy of Numbers: Aid, Development, and Cross-Country Empirics

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