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The World Bank COVID-19 Response: Politics as Usual?

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Abstract

Have geopolitics influenced World Bank COVID-19 lending? Analyzing World Bank lending from April 1, 2020 (the start of COVID-19 lending) to June 30, 2020, we find countries that hold a politically important nonpermanent seat on the UN Security Council received larger regular World Bank loans and countries that align with the US on important UN General Assembly votes received more World Bank regular loans (and hence more funding). However, these geopolitical variables are not significant factors in determining COVID-19 funding. In contrast to ordinary business, the World Bank appears to have kept politics out of its initial pandemic response.

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  • Christopher Kilby & Carolyn McWhirter, 2020. "The World Bank COVID-19 Response: Politics as Usual?," Villanova School of Business Department of Economics and Statistics Working Paper Series 46, Villanova School of Business Department of Economics and Statistics.
    • Handle: RePEc:vil:papers:46
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    1. ROUKANAS A. Spyros & VITZILEOS Vaggelis, 2023. "The Response Of International Financial Institutions To The Covid-19 Crisis," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 18(2), pages 257-269, August.

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    More about this item

    Keywords

    COVID-19; pandemic; World Bank; foreign aid; geopolitics;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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