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Multilateral Aid and Domestic Economic Interests

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  • McLean, Elena V.
Abstract
Existing studies of foreign aid suggest that donor countries' economic groups, such as exporters, should be generally opposed to multilateral aid because multilateral flows do not allow donor countries to tie their aid implicitly or explicitly to the promotion of their domestic economic interests. However, economic groups can actually benefit from some types of multilateral aid, and this serves as an incentive for donor governments to support international organizations generating the benefits. I test my argument using data on aid allocated to the Multilateral Fund for the Implementation of the Montreal Protocol and the Global Environment Facility, and international trade by commodity. I find robust empirical support for the argument that when donors' domestic economic groups are likely to gain from opportunities created by international environmental organizations' programs, donor governments increase aid allocations to these organizations.

Suggested Citation

  • McLean, Elena V., 2015. "Multilateral Aid and Domestic Economic Interests," International Organization, Cambridge University Press, vol. 69(1), pages 97-130, January.
    • Handle: RePEc:cup:intorg:v:69:y:2015:i:01:p:97-130_00
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    Citations

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    Cited by:

    1. Daina Chiba & Tobias Heinrich, 2019. "Colonial Legacy and Foreign Aid: Decomposing the Colonial Bias," International Interactions, Taylor & Francis Journals, vol. 45(3), pages 474-499, May.
    2. Balázs Szent-Iványi & Bernhard Reinsberg & Simon Lightfoot, 2019. "Small Donors in World Politics: The Role of Trust Funds in the Foreign Aid Policies of Central and Eastern European Donors," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(3), pages 663-683, July.
    3. Tobias Heinrich & Yoshiharu Kobayashi, 2022. "Evaluating explanations for poverty selectivity in foreign aid," Kyklos, Wiley Blackwell, vol. 75(1), pages 30-47, February.
    4. McLean, Elena V., 2023. "Looking for advice: The politics of consulting services procurement in the World Bank," World Development, Elsevier, vol. 161(C).
    5. Sara Norrevik, 2021. "Foreign economic policy in the European Parliament and economic interdependence with foreign powers," European Union Politics, , vol. 22(4), pages 700-720, December.
    6. Elena V. McLean, 2017. "The politics of contract allocation in the World Bank," The Review of International Organizations, Springer, vol. 12(2), pages 255-279, June.
    7. Osman Sabri Kiratli, 2021. "Politicization of Aiding Others: The Impact of Migration on European Public Opinion of Development Aid," Journal of Common Market Studies, Wiley Blackwell, vol. 59(1), pages 53-71, January.
    8. Osman S Kiratli, 2019. "Aiding together? Europeans’ attitudes on common aid policy," European Union Politics, , vol. 20(2), pages 261-281, June.
    9. Thilo Bodenstein & Jörg Faust, 2017. "Who Cares? European Public Opinion on Foreign Aid and Political Conditionality," Journal of Common Market Studies, Wiley Blackwell, vol. 55(5), pages 955-973, September.
    10. Hoekman, Bernard & Shingal, Anirudh, 2024. "Development Goals, commercial interest and EU Aid-for-Trade," World Development, Elsevier, vol. 173(C).
    11. Mikitchuk, Marina, 2024. "Forming the benefit-oriented official assistance: Cross-country analysis," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 74, pages 124-143.

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