Regional Development Banks in Comparison: Banking Strategies versus Development Goals

296 Pages·2016·3.445 MB·English

by  Ruth Ben-Artzi

RegionalDevelopmentBanksinComparison
InastudythatcontributestoIRandIPEtheory,RuthBen-Artziraises
substantive issuesrelatingtoaid,development,internationalrelations
and globalization. Regional development banks (RDBs), designed by
politicians and economists to maneuver through labyrinths of
economic, social, and political development, possess the potential to
be central players in the long-term planning involved in healing and
advancingpoverty-plaguedregions.However,RDBsinparticularhave
received little attention. With a systematic analysis comparing four
central regional development banks, this book explores why there’s
a variation in strategy despite similar institutional design. The formal
arrangements and raison d’être of RDBs are to assist developing
countries in the process of poverty alleviation – a task that is often
ariskyinvestment.Focusingonthedichotomybetweentheirbanking
and development roles, Ben-Artzi demonstrates that RDBs are
potentially critical catalysts in the fight against poverty, even with
theirinstitutionallimitations.
RuthBen-ArtziisAssociateProfessorofPoliticalScienceatProvidence
College. Professor Ben-Artzi has been a post-doctoral fellow at the
University of Pennsylvania’s Browne Center for International Politics
and a visiting fellow at Sciences-Po in Paris, France. She holds a PhD
fromColumbiaUniversityandanABfromtheUniversityofHaifa.

Regional Development Banks
in Comparison
Banking Strategies versus Development Goals
RUTH BEN-ARTZI
ProvidenceCollege,Providence,RhodeIsland
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©RuthBen-Artzi2016
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ToAndrew

Contents
ListofFigures pageix
ListofTables xi
Preface xiii
Acknowledgments xv
Introduction 1
1 InternationalFinancialInstitutions,Development,
andRegionalDevelopmentBanks 7
1.1 TheResearchQuestionintheLargerContext 10
1.2 TheImportanceofthePuzzle 12
1.3 ResearchDesign 15
1.4 DevelopmentAssistance 20
1.5 Government’sRole 25
1.6 Cooperation 31
1.7 Globalization:AdaptingtoaNewReality 35
1.8 Conclusion 39
2 MultilateralGovernance:TheoreticalandEmpirical
Underpinnings 41
2.1 WhoRules? 43
2.2 HypothesesandResearchDesign 55
2.3 Conclusion 61
3 Origins,Politics,andStructureofRegionalDevelopment
Banks 63
3.1 FoundingPrinciples 64
3.2 ComparingtheRDBs 69
3.3 RDBs’CapitalStructure 87
vii
viii Contents
3.4 Geography,States,andPeople 90
3.5 LendingStrategies 98
3.6 Conclusion:WhatAreTheyLike,WhatDo
TheyDo 107
4 RDBLoansandDevelopingCountries 109
4.1 Data:DescriptionandSources 110
4.2 VariablesandExplanationofModels 117
4.3 AHistoricalLookatRDBLoans 121
4.4 TheStateofDevelopment 131
4.5 SelectedCountries 140
4.6 AComparisontotheWorldBank 146
4.7 Conclusion 149
5 BanksorDevelopmentAgencies? 151
5.1 Analysis 153
5.2 Findings 157
5.3 ComparisonSummary 182
5.4 Conclusion 192
6 PoliticalandEconomicConstraints,PrincipalsandAgents,
andProspectsforDevelopment 194
6.1 PoliticalInterestsandRDBs 196
6.2 WhyBeaDonor? 219
6.3 PowertoBorrowers? 226
6.4 WealthyStates,PoorStates,andRDBStructures 232
Conclusion:FutureOutlook 236
Appendix1: LifeExpectancyandHDIRank 245
Appendix2: RDBShareholders 248
Appendix3: AsDBProfessionalStaff 257
Bibliography 259
Index 269