IDEAS home Printed from https://ideas.repec.org/a/spr/revint/v19y2024i4d10.1007_s11558-024-09549-0.html
   My bibliography  Save this article

Economic crises and the survival of international organizations

Author

Listed:
  • Yoram Z. Haftel

    (The Hebrew University of Jerusalem)

  • Bar Nadel

    (The Hebrew University of Jerusalem)

Abstract

How do hard economic times affect countries’ foreign policy and, specifically, their international commitments? Although a large body of literature assumes that economic crises lead to the prioritization of domestic politics at the expense of international cooperation, these claims are rarely subjected to systematic empirical tests. This study examines one important aspect of these relationships: the consequences of economic crises for the survival of international organizations (IOs), a question that attracted only scant scholarly attention to date. Theoretically, we argue that even though economic crises can weaken member states’ commitment to IOs, they also underscore their ability to tackle the root causes of such crises and mitigate their most pernicious effects. As such, economic crises are actually conducive to IO longevity. We expect this effect to be especially pronounced for currency crises, IOs with an economic mandate, and regional IOs, given their particular relevance for international cooperation during hard economic times. These conjectures are tested with a comprehensive sample of IOs and data on currency, banking and sovereign debt crises from 1970 to 2014. Using event history models and controlling for several alternative explanations of IO survival, we find ample empirical support for the theoretical expectations.

Suggested Citation

  • Yoram Z. Haftel & Bar Nadel, 2024. "Economic crises and the survival of international organizations," The Review of International Organizations, Springer, vol. 19(4), pages 665-690, October.
  • Handle: RePEc:spr:revint:v:19:y:2024:i:4:d:10.1007_s11558-024-09549-0
    DOI: 10.1007/s11558-024-09549-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11558-024-09549-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11558-024-09549-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yoram Z. Haftel & Tobias Lenz, 2022. "Measuring institutional overlap in global governance," The Review of International Organizations, Springer, vol. 17(2), pages 323-347, April.
    2. repec:bla:scandj:v:98:y:1996:i:4:p:463-84 is not listed on IDEAS
    3. Thompson, Alexander, 2006. "Coercion Through IOs: The Security Council and the Logic of Information Transmission," International Organization, Cambridge University Press, vol. 60(1), pages 1-34, January.
    4. Robert C. Feenstra & Robert Inklaar & Marcel P. Timmer, 2015. "The Next Generation of the Penn World Table," American Economic Review, American Economic Association, vol. 105(10), pages 3150-3182, October.
    5. Pevehouse, Jon & Russett, Bruce, 2006. "Democratic International Governmental Organizations Promote Peace," International Organization, Cambridge University Press, vol. 60(4), pages 969-1000, October.
    6. Evgeny Vinokurov & Alexander Libman, 2014. "Do economic crises impede or advance regional economic integration in the post-Soviet space?," Post-Communist Economies, Taylor & Francis Journals, vol. 26(3), pages 341-358, September.
    7. Mette Eilstrup-Sangiovanni, 2020. "Death of international organizations. The organizational ecology of intergovernmental organizations, 1815–2015," The Review of International Organizations, Springer, vol. 15(2), pages 339-370, April.
    8. Luc Laeven & Fabian Valencia, 2020. "Systemic Banking Crises Database II," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 68(2), pages 307-361, June.
    9. Chaudoin, Stephen & Hays, Jude & Hicks, Raymond, 2018. "Do We Really Know the WTO Cures Cancer?," British Journal of Political Science, Cambridge University Press, vol. 48(4), pages 903-928, October.
    10. Chwieroth, Jeffrey & Walter, Andrew, 2017. "Banking crises and politics: a long run perspective," LSE Research Online Documents on Economics 84368, London School of Economics and Political Science, LSE Library.
    11. Haidar, Jamal Ibrahim, 2012. "Currency crisis transmission through international trade," Economic Modelling, Elsevier, vol. 29(2), pages 151-157.
    12. Mr. Axel Schimmelpfennig & Nouriel Roubini & Paolo Manasse, 2003. "Predicting Sovereign Debt Crises," IMF Working Papers 2003/221, International Monetary Fund.
    13. Matthias Matthijs, 2022. "Hegemonic leadership is what states make of it: reading Kindleberger in Washington and Berlin," Review of International Political Economy, Taylor & Francis Journals, vol. 29(2), pages 371-398, March.
    14. Glick, Reuven & Rose, Andrew K., 1999. "Contagion and trade: Why are currency crises regional?," Journal of International Money and Finance, Elsevier, vol. 18(4), pages 603-617, August.
    15. Mahrukh Doctor, 2013. "Prospects for deepening Mercosur integration: Economic asymmetry and institutional deficits," Review of International Political Economy, Taylor & Francis Journals, vol. 20(3), pages 515-540, June.
    16. Cristina Pereira Pedro & Joaquim J. S. Ramalho & Jacinto Vidigal Silva, 2018. "The main determinants of banking crises in OECD countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(1), pages 203-227, February.
    17. Christian Adam & Michael Bauer & Christoph Knill & Philipp Studinger, 2007. "The Termination of Public Organizations: Theoretical Perspectives to Revitalize a Promising Research Area," Public Organization Review, Springer, vol. 7(3), pages 221-236, September.
    18. Mark Copelovitch & Jon C. W. Pevehouse, 2019. "International organizations in a new era of populist nationalism," The Review of International Organizations, Springer, vol. 14(2), pages 169-186, June.
    19. Laeven, Luc & Valencia, Fabian, 2020. "Systemic Banking Crises Database: A Timely Update in COVID-19 Times," CEPR Discussion Papers 14569, C.E.P.R. Discussion Papers.
    20. Maria J. Debre, 2022. "Clubs of autocrats: Regional organizations and authoritarian survival," The Review of International Organizations, Springer, vol. 17(3), pages 485-511, July.
    21. Janice Boucher Breuer, 2004. "An Exegesis on Currency and Banking Crises," Journal of Economic Surveys, Wiley Blackwell, vol. 18(3), pages 293-320, July.
    22. Bernd Schlipphak & Paul Meiners & Osman Sabri Kiratli, 2022. "Crisis affectedness, elite cues and IO public legitimacy," The Review of International Organizations, Springer, vol. 17(4), pages 877-898, October.
    23. David H. Bearce & Brandy J. Jolliff Scott, 2019. "Popular non-support for international organizations: How extensive and what does this represent?," The Review of International Organizations, Springer, vol. 14(2), pages 187-216, June.
    24. Dungey, Mardi & Gajurel, Dinesh, 2015. "Contagion and banking crisis – International evidence for 2007–2009," Journal of Banking & Finance, Elsevier, vol. 60(C), pages 271-283.
    25. Bulmer-Thomas, Victor, 1998. "The Central American common market: From closed to open regionalism," World Development, Elsevier, vol. 26(2), pages 313-322, February.
    26. De Vries, Catherine E. & Hobolt, Sara B. & Walter, Stefanie, 2021. "Politicizing International Cooperation: The Mass Public, Political Entrepreneurs, and Political Opportunity Structures," International Organization, Cambridge University Press, vol. 75(2), pages 306-332, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Julia Gray, 2024. "The life cycle of international cooperation: Introduction to the special issue," The Review of International Organizations, Springer, vol. 19(4), pages 641-664, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Herradi, Mehdi El & Leroy, Aurélien, 2022. "The rich, poor, and middle class: Banking crises and income distribution," Journal of International Money and Finance, Elsevier, vol. 127(C).
    2. Inken Borzyskowski & Felicity Vabulas, 2024. "Public support for withdrawal from international organizations: Experimental evidence from the US," The Review of International Organizations, Springer, vol. 19(4), pages 809-845, October.
    3. Manuel Funke & Moritz Schularick & Christoph Trebesch, 2023. "Populist Leaders and the Economy," American Economic Review, American Economic Association, vol. 113(12), pages 3249-3288, December.
    4. Madeira, Carlos, 2024. "The impact of macroprudential policies on industrial growth," Journal of International Money and Finance, Elsevier, vol. 145(C).
    5. Maximilian Grimm, 2024. "The Effect of Monetary Policy on Systemic Bank Funding Stability," ECONtribute Discussion Papers Series 341, University of Bonn and University of Cologne, Germany.
    6. Jiang, Hai & Tang, Shenfeng & Li, Lifang & Xu, Fangming & Di, Qian, 2022. "Re-examining the Contagion Channels of Global Financial Crises: Evidence from the Twelve Years since the US Subprime Crisis," Research in International Business and Finance, Elsevier, vol. 60(C).
    7. Kern, Andreas & Nosrati, Elias & Reinsberg, Bernhard & Sevinc, Dilek, 2023. "Crash for cash: Offshore financial destinations and IMF programs," European Journal of Political Economy, Elsevier, vol. 78(C).
    8. Chen, Haojing & Bayram, Mehmet Emin & Lee, Changmin, 2023. "Measuring impact of health crises on economies: A staggered synthetic control approach with bias-correction," Finance Research Letters, Elsevier, vol. 58(PD).
    9. Mekki Hamdaoui & SaifEddine Ayouni & Samir Maktouf, 2022. "Financial crises: explanation, prediction, and interdependence," SN Business & Economics, Springer, vol. 2(8), pages 1-52, August.
    10. de Haan, Jakob & Fang, Yi & Jing, Zhongbo, 2020. "Does the risk on banks’ balance sheets predict banking crises? New evidence for developing countries," International Review of Economics & Finance, Elsevier, vol. 68(C), pages 254-268.
    11. Cardot-Martin, Raphaël & Labondance, Fabien & Refait-Alexandre, Catherine, 2022. "Capital ratios and banking crises in the European Union," International Economics, Elsevier, vol. 172(C), pages 389-402.
    12. Robert C. M. Beyer & Konstantin M. Wacker, 2024. "Good enough for outstanding growth: The experience of Bangladesh in comparative perspective," Development Policy Review, Overseas Development Institute, vol. 42(2), March.
    13. Julia Gray, 2024. "The life cycle of international cooperation: Introduction to the special issue," The Review of International Organizations, Springer, vol. 19(4), pages 641-664, October.
    14. Pozo, Jorge, 2023. "Bank risk-taking in emerging economies: Empirical evidence and theory," Journal of Financial Stability, Elsevier, vol. 67(C).
    15. Dombi, Ákos & Grigoriadis, Theocharis N. & Zhu, Junbing, 2024. "Antiquity, capitalism & development: The finance-growth perspective," Emerging Markets Review, Elsevier, vol. 59(C).
    16. Roy, Saktinil, 2022. "What drives the systemic banking crises in advanced economies?," Global Finance Journal, Elsevier, vol. 54(C).
    17. Eijffinger, Sylvester C.W. & Karataş, Bilge, 2023. "Three sisters: The interlinkage between sovereign debt, currency, and banking crises," Journal of International Money and Finance, Elsevier, vol. 131(C).
    18. Jeffrey King & Andrew Lugg, 2023. "Politicising pandemics: Evidence from US media coverage of the World Health Organisation," Global Policy, London School of Economics and Political Science, vol. 14(2), pages 247-259, May.
    19. Thanh Cong Nguyen & Trung Hieu Le, 2024. "Financial crises and the national logistics performance: Evidence from emerging and developing countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 1834-1855, April.
    20. Henning Schmidtke & Tobias Lenz, 2024. "Expanding or defending legitimacy? Why international organizations intensify self-legitimation," The Review of International Organizations, Springer, vol. 19(4), pages 753-784, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:revint:v:19:y:2024:i:4:d:10.1007_s11558-024-09549-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.