Donor Influence in multilateral Development banks The case of the Asian Development Bank

This paper explores the influence of Japan and the United States over the geographic distribution of Asian Development Bank (ADB) funds. Although nominally an independent, multilateral organization, the ADB is widely regarded as bowing to the interests of its two most influential donors. Estimation...

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Journal Title: Review of International Organizations Vol. 1; no. 2; pp. 173 - 195
Author: Christopher Kilby
Format: Article
Language: English
Published: June 2006
Online Access: Full Text
Summary: This paper explores the influence of Japan and the United States over the geographic distribution of Asian Development Bank (ADB) funds. Although nominally an independent, multilateral organization, the ADB is widely regarded as bowing to the interests of its two most influential donors. Estimation using panel data for less developed Asian countries from 1968 to 2002 suggests significant donor influence with inconsistent weight placed on humanitarian criteria given limited funding for the region's largest countries, China and India. Comparing the results with research on World Bank loan allocation suggests donor interests are relatively more important in the ADB. This finding justifies the existence of the ADB on political grounds but calls into question its relative merits on economic grounds.
ISSN: 1559-7431
DOI: 10.1007/s11558-006-8343-9