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Promoting National Interest: Foreign Policy and the International Lending Institutions

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The Political Economy of Development in Southeastern Europe

Part of the book series: Contributions to Economics ((CE))

Abstract

The paper’s objective is to examine whether a state’s national interest and influence are promoted through international institutions. It relies on the theory of Realism, according to which institutions enable states to coordinate even though there are asymmetric benefits for each state, since power is the decisive variable which defines how each institution is formed and operates. The analytical framework of this paper is developed within the confines of international political economy. The dependent variable is national interest, and the independent variables are international development cooperation (on a bilateral level) and shareholding in international lending institutions. The focus is on these variables because each directly affects the national sovereignty of the recipient country and alters its domestic structure. By examining the case of the United States (through the USAID) and its role in the International Monetary Fund and the World Bank in Afghanistan, Pakistan, and Iraq, conflict-engaged countries and crucial to US interests, I conclude that international lending institutions mainly promote the national interest of the leading power within the institutions.

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Correspondence to Victoria Pistikou .

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Pistikou, V. (2018). Promoting National Interest: Foreign Policy and the International Lending Institutions. In: Roukanas, S., Polychronidou, P., Karasavvoglou, A. (eds) The Political Economy of Development in Southeastern Europe. Contributions to Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-93452-5_11

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