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The Political Economy Of International Financial Institutions’ Lending To Pakistan

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  • Anwar, Mumtaz

Abstract

This paper analyzes the determinants of multilateral aid from international financial institutions (IFIs) to Pakistan, focusing on the world three major IFIs, the World Bank, the IMF and the ADB. Political economic factors, notably bureaucratic interests and major shareholders economic interests, are suspected to be relevant in international aid allocation decisions. Pooled Tobit estimation analyses confirm this hypothesis. Although recipient need also proves to be a relevant determinant of lending, bureaucratic interest outranks the former. Among the main multilateral donors, the IDA and the ADB are shown to be more bureaucratic and stakeholders economic interest-oriented in their lending decisions than the IBRD and the IMF, which tend to adhere to official lending explanations.

Suggested Citation

  • Anwar, Mumtaz, 2006. "The Political Economy Of International Financial Institutions’ Lending To Pakistan," MPRA Paper 5601, University Library of Munich, Germany, revised 01 Dec 2006.
    • Handle: RePEc:pra:mprapa:5601
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    Cited by:

    1. Farwa Sial & Juvaria Jafri & Abdul Khaliq, 2023. "Pakistan, China and the Structures of Debt Distress: Resisting Bretton Woods," Development and Change, International Institute of Social Studies, vol. 54(5), pages 1226-1263, September.
    2. Christopher Kilby, 2011. "Informal influence in the Asian Development Bank," The Review of International Organizations, Springer, vol. 6(3), pages 223-257, September.

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    More about this item

    Keywords

    Foreign aid; International organizations; Bureaucracy;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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