INTERNATIONAL ORGANIZATIONS 396 DEVELOPMENT ORGANIZATIONS PART 2 THE

INTERNATIONAL ORGANIZATIONS 396: DEVELOPMENT ORGANIZATIONS PART 2 – THE ASIAN DEVELOPMENT BANK JAMES RAYMOND VREELAND, PROFESSOR 2. 0 1

Kilby, Christopher. 2006. Donor Influence in Multilateral Development Banks: The Case of the Asian Development Bank. Review of International Organizations 1 (2): 173 -95. 2

Plan • Regional Development Banks • How to read • Politics of ADB lending 3

Asian Development Bank (ADB) • Founded 1966 – Modeled on the World Bank • Cold War politics in play: – Offering development model counter to Communism • Other development banks: – – World Bank (1944) Inter-American Development Bank Group (1959) African Development Bank (1966) European Bank for Reconstruction and Development (1991)

African Development Bank (founded 1964 -1966) • Founded during independence movements of Africa • So started independent: – Closed to non-African countries until 1982 • But they didn’t have enough money! – Opened up to the West • “No member country, or a group of countries has veto power; Board decisions are generally made through discussion and consensus rather than through the exercise of voting powers. ” • Af. DB commits approximately $3 billion annually to African countries (only about 6% of development aid to the continent) • Projects: power supply, water and sanitation, transport and communications, Regional integration infrastructure (transport and power interconnections between smaller African economies), fight against HIV/AIDS 5

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Inter-American Development Bank (1959) • Cold War in play – Cuban Revolution – Offering an alternative development model to Communism • “the main source of multilateral financing in the region” http: //www. iadb. org/aboutus/ • Countries that receive IDB financing also hold a majority of its shares. BUT the US has 30% of the votes!! (See Strand, 2003) 7

Take-aways on RDBs • Foundation important to remember – Cold War (As. DB/IDB), Independence (Af. DB) • Representation based on – 1 dollar 1 vote (like World Bank) – Augmented by regional status • Af. DP: Nigeria • As. DB: Japan • IDB: Brazil-Argentina 8

Asian Development Bank (ADB) • • http: //www. youtube. com/watch? v=F-qef 0 vpu 74 https: //www. adb. org/site/investors/credit-fundamentals/shareholders 9

Donor influence in the Asian Development Bank 10

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A simple 5 -step guide to How to read basic “regression” results 1. What is the analysis “explaining”? Dependent variable, usually in the title of the table 2. What is the unit of analysis? How many observations… of what? (In IO studies, often “country-years”) 3. What are the independent variables of interest? Main independent variable(s), Control variables 4. What is the effect of each independent (explanatory) variable? Just ask: Is the “coefficient” positive/negative? 5. Are the effects statistically significant? a. b. c. d. Star-gazing *, *** Is the standard error <1/2 the size of the coefficient? OR: is the t-stat/z-stat >1. 96? OR: is the p-value<0. 05? 13

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“Robust” ? Finding holds across different model specifications. (like garlic? ) 17

The effect of st. J • Robust across: – Different samples (“full” vs “UN” – “selection” (who gets ADB loans) – “allocation” (how much ADB lending) • Driven by the post-1986 period 18

Substantive lessons from today • Regional development organizations have a similar governance structure to the World Bank • But Regional hegemons tend to play the role that the “G 5” plays at the World Bank • Big players: – Asian Development Bank: Japan & US – African Development Bank: Nigeria & US – Inter-American Development Bank: US & Brazil, Argentina • Do governments use these international institutions to pursue foreign policy goals? • Yes! (For the Asian Development Bank… so far…) 19

Today’s skill: • How to read results from regression analysis of statistical data 20

Thank you 21