Behind the Development Banks : Washington Politics, World Poverty, and the Wealth of Nations

The World Bank and other multilateral development banks (MDBs) carry out their mission to alleviate poverty and promote economic growth based on the advice of professional economists. But as Sarah Babb argues in Behind the Development Banks, these organizations have also been indelibly shaped by Washington politics—particularly by the legislative branch and its power of the purse. Tracing American influence on MDBs over three decades, this volume assesses increased congressional activism and the perpetual “selling” of banks to Congress by the executive branch. Babb contends that congressional reluctance to fund the MDBs has enhanced the influence of the United States on them by making credible America’s threat to abandon the banks if its policy preferences are not followed. At a time when the United States’ role in world affairs is being closely scrutinized, Behind the Development Banks will be necessary reading for anyone interested in how American politics helps determine the fate of developing countries. The World Bank and other multilateral development banks (MDBs) carry out their mission to alleviate poverty and promote economic growth based on the advice of professional economists. But as Sarah Babb argues in __Behind the Development Banks__, these organizations have also been indelibly shaped by Washington politics—particularly by the legislative branch and its power of the purse. Tracing American influence on MDBs over three decades, this volume assesses increased congressional activism and the perpetual “selling” of banks to Congress by the executive branch. Babb contends that congressional reluctance to fund the MDBs has enhanced the influence of the United States on them by making credible America’s threat to abandon the banks if its policy preferences are not followed. At a time when the United States’ role in world affairs is being closely scrutinized, __Behind the Development Banks__ will be necessary reading for anyone interested in how American politics helps determine the fate of developing countries. The World Bank And Other Multilateral Development Banks Carry Out Their Mission To Alleviate Poverty And Promote Economic Growth Based On The Advice Of Professional Economists. But As Sarah Babb Argues In This Book, These Organizations Have Also Been Indelibly Shaped By Washington Politics. The Banks And Their Shareholders -- The Congressional Revolt -- The Reagan Revolution -- Disciplining The Banks -- The Emergence Of The Washington Consensus -- The Consensus Evolves -- The Banks And Civil Society -- Into The New Millennium. Sarah Babb. Includes Bibliographical References (p. [267]-291) And Index. University Of Chicago Press Contents 8 Preface 10 Introduction 18 Chapter 1. The Banks and Their Shareholders 37 Chapter 2. The Congressional Revolt 63 Chapter 3. The Reagan Revolution 87 Chapter 4. Disciplining the Banks 116 Chapter 5. The Emergence of the Washington Consensus 143 Chapter 6. The Consensus Evolves 165 Chapter 7. The Banks and Civil Society 197 Chapter 8. Into the New Millennium 224 Notes 254 Bibliography 284 Index 310 ISBN-13:,9780226033655 The two worlds of the multilateral development banks The banks and their shareholders The banks and the Beltway in the 1970s Forging a new policy program Disciplining the banks The emergence of the Washington consensus Augmenting the Washington consensus The rise of social movements The banks and the Beltway in the new millennium. Examines the influence of congressional activism and Washington politics on the ideas and activities of the World Bank and other multilateral development banks, discussing three decades of history and policies