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International Institutions and Political Liberalization: Evidence from the World Bank Loans Program

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  • Carnegie, Allison
  • Samii, Cyrus

Abstract

How do international institutions affect political liberalization in member states? Motivated by an examination of the World Bank loans program, this article shows that institutions can incentivize liberalization by offering opportunities for countries to become associated with advanced, wealthy members. In the World Bank, when a loan recipient reaches a specified level of economic development, it becomes eligible to graduate from borrower status to lender status. Using a regression discontinuity design, the study demonstrates that this incentive motivates states to improve their domestic behavior with respect to human rights and democracy. Combining qualitative and quantitative evidence, the results suggest that the desire to become a member of this elite group is responsible for motivating member states to reform due to the belief that such membership brings diffuse international and domestic benefits.

Suggested Citation

  • Carnegie, Allison & Samii, Cyrus, 2019. "International Institutions and Political Liberalization: Evidence from the World Bank Loans Program," British Journal of Political Science, Cambridge University Press, vol. 49(4), pages 1357-1379, October.
    • Handle: RePEc:cup:bjposi:v:49:y:2019:i:04:p:1357-1379_00
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    Cited by:

    1. Knack,Stephen & Parks,Bradley Christopher & Harutyunyan,Ani & DiLorenzo,Matthew, 2020. "How Does the World Bank Influence the Development Policy Priorities of Low-Income and Lower-Middle Income Countries ?," Policy Research Working Paper Series 9225, The World Bank.
    2. Guo, Jianan & Islam, Muhammad Azizul & Jain, Ameeta & van Staden, Chris J., 2022. "Civil liberties and social and environmental information transparency: A global investigation of financial institutions," The British Accounting Review, Elsevier, vol. 54(1).
    3. Allison Carnegie & Lindsay R. Dolan, 2021. "The effects of rejecting aid on recipients’ reputations: Evidence from natural disaster responses," The Review of International Organizations, Springer, vol. 16(3), pages 495-519, July.

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