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  • Cited by 10
Publisher:
Cambridge University Press
Online publication date:
August 2017
Print publication year:
2016
Online ISBN:
9781316779385

Book description

China's initiative to establish the Asian Infrastructure Investment Bank (AIIB), attracting membership from G7 countries against the vocal opposition of the United States, has been recognised as a significant moment in an ongoing hegemonic transition. This book examines how power transitions have played out in the World Bank over the last five decades, offering the first authentic account of the international diplomacy behind donor financing of the World Bank's International Development Association (IDA). Jiajun Xu decodes how the United States amplified its influence at the World Bank despite its flagging financial contributions to IDA. She further demonstrates that the widening influence-to-contribution disparity provoked other donors into taking 'exit/voice' measures, contesting the hegemon's legitimacy. A rising China initially decided to become an IDA donor, seeking influence from within. However, the entrenched hegemonic position of the United States in World Bank governance drove China to initiate the AIIB and New Development Bank, putting competitive pressures on the US-centred multilateral institutions to adapt.

Reviews

'Dr Xu, a pioneer of research on China´s role in global development finance, illuminates with in-depth empirical and institutional knowledge the changing power dynamics of multilateral development banking, a crucial step toward a new multipolar world order.'

Helmut Reisen - Universität Basel, Switzerland, head of ShiftingWealth and former Director of the Organisation for Economic Co-operation and Developemt Center

'Jiajun Xu lifts the veil over the inner struggles among the donor community in funding the World Bank’s emblematic aid window through the Cold War and after, and illuminates China’s decision to launch new multilateral development finance institutions. A fundamental contribution to understanding the profound transitions in the US-led hegemonic international economic system.'

Richard Carey - Chair, International Advisory Committee of the China International Development Research Network and former Director for Development Co-operation, Organisation for Economic Co-operation and Development

'In a dew drop can be seen all the colors of the rainbow', said a philosopher. In Jiajun Xu’s book the World Bank and its soft-loan lending arm, the International Development Association (IDA), is the dew drop, and power in the inter-state system and the procedures intended to be the check on self-interested uses of power are the colors. Her analysis of the power-procedures interplay in IDA over decades is relevant across the field of international political economy.'

Robert H. Wade - London School of Economics

'This is essential reading for international economists, aid professionals and others interested in how multilateral institutions function. Dr Xu's analysis of what happened in the World Bank can be applied to other institutions in an imperfect, insufficiently adaptable, global system. It explains why China found it necessary to create new institutions to complement its working within the framework of existing ones.'

Percy Mistry - Chairman, Oxford International Associates Ltd

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Contents

  • Introduction
    pp 1-16

Bibliography

Archives

  • Below are the main categories of cited archival materials.

World Bank Archives

  • IDA Deputies’ Meetings Memos.

  • IDA Replenishment Agreements, from IDA-1 to IDA-16.

  • IDA Replenishment Discussion Papers, from IDA-1 to IDA-16.

  • IDA Replenishment Negotiations – Board Memos.

  • Annual Meetings of the Boards of Governors: Summary Proceedings, various years.

  • Major Donors: IDA Negotiation and Country Allocation.

  • Presidential Chronological Correspondence of IDA Replenishment Chairpersons.

  • World Bank Oral History Programme.

  • World Bank’s Annual Reports, various years.

  • World Bank’s Selective Capital Increases resolutions and official memorandums.

The UK National Archives

  • Foreign and Commonwealth Office, IBRD/IDA & Oil-Producing Countries, FCO59/123.

  • Foreign and Commonwealth Office, IDA Credit Allocations: India’s Share, 1968–69, FCO37/412.

  • Foreign and Commonwealth Office, IDA Fourth Replenishment, FCO59/1032.

  • Ministry of Overseas Development, Current and Future Aid Framework Provision for the World Bank Group/IMF, 1976–78, OD36/382.

  • Ministry of Overseas Development, IDA Fifth Replenishment, 1976–78, OD20/519, OD36/250, OD36/251, OD36/252, OD36/253, OD36/254, OD36/348.

  • Ministry of Overseas Development, IDA Fourth Replenishment, 1973–75, OD33/198, OD33/199, OD33/200, OD33/202.

  • Ministry of Overseas Development, IDA Second Replenishment, OD9/202, OD9/254, OD9/255, OD9/256, OD9/257.

  • Ministry of Overseas Development, IDA Third Replenishment, OD9/269, OD9/270, OD9/272, OD9/273.

  • Ministry of Overseas Development, Multilateral Untying, 1976–78, OD36/386.

  • Ministry of Overseas Development, Regional Development Bank Replenishments, 1979–81, OD36/453.

  • Ministry of Overseas Development, Regional Development Banks Relations with IBRD and IDA, 1970–72, OD9/371.

  • Overseas Development Administration, IDA: Future Directions of Eighth Replenishment, 1985–87, OD57/14, OD57/15, OD57/16, OD57/17, OD57/18, OD57/20.

  • Overseas Development Administration, IDA Seventh Replenishment, 1985–87, OD57/24, OD57/25, OD108/27, OD108/28.

  • The Department for International Department’s Reports on IDA.

  • The UK Parliamentary Reports on the World Bank-IDA.

  • Treasury, IBRD/IDA: Information Relating to Procurement under IBRD Loans and IDA Credits, 1964–75, T317/2274.

  • Treasury, Negotiations for the Fourth Replenishment of the International Development Association, 1973, 317–1669, T317-1833, T317/1834.

The US National Archives

  • Foreign Assistance, International Development, Trade Policies, 1969–72, Volume IV, Foreign Relations of the United States.

  • Foreign Economic Policy, 1969–76, Volume VIII, Foreign Relations of the United States.

  • Foreign Economic Policy, 1973–76, Volume XXXI, Foreign Relations of the United States.

  • Foreign Economic Policy; International Monetary Policy, 1969–72, Volume III, Foreign Relations of the United States.

  • General Records of the Department of the Treasury, Chronological files, 1973–75, Record Group 56, Entry A1-780, Boxes 1–4.

Other US Official Documents

  • Department of the Treasury, Treasury International Programmes: Justification for Appropriations: Budget Request, various fiscal years.

  • Messages from the President of the US to the Congress.

  • National Advisory Council on International Monetary and Financial Policies, Special Report to the President and to the Congress of the Proposed Replenishment of the Resources of the International Development Association, various years.

  • Presidential Documents, various years.

  • The US Congress. Congressional Quarterly Almanac. Washington, D.C: Congressional Quarterly Inc., various years.

  • The US Congressional Hearings on IDA Replenishments.

  • The US Congressional Reports on IDA Replenishments.

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