The Inter-American Development Bank and the Washington Consensus

Author:

Babb Sarah

Abstract

This chapter traces how the United States (US) Treasury engineered the major shift in the Inter-American Development Bank’s (IADB) policy and formal structure through negotiations over donor contributions to its financial resources. The US behaved as an ‘activist shareholder’—using its control over resources to bargain with management for organizational change. Yet in contrast to ‘shareholder value’ in private firms, international donors can use foreign aid to pursue a range of incommensurable goals. The IADB’s initiation into the Washington Consensus resulted from a historic and durable shift in US policy-makers’ conception of shareholder value, from one in which the banks were worthy of support because of their ability to promote US security and diplomatic goals, to one that valued the Banks’ ability to change national economic policies. US shareholder activism not only brought the development banks into alignment with Washington’s agenda, but also into alignment with one another.

Publisher

Oxford University Press

Cited by 1 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

1. International Financial Institutions;The Oxford Handbook of International Political Economy;2022-10-20

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