ABSTRACT

The multilateral development banks operate at a key point in the international system, as they help transfer resources from rich to poor countries and seek to shape the course of economic development in Third World nations. A persistent issue in the debates over United States (US) policy toward the banks has been their relationship to other aspects of foreign policy and whether the United States should pursue ends that might “politicize” the international agencies. Some have argued that the US should protect the non-political character of the banks, even at the possible expense of some of its national goals. Early proponents of multilateral aid thought the banks would help reduce the political overtones associated with foreign aid and insulate development assistance from the cut and thrust of international diplomacy. Some partisans for multilateral and bilateral foreign assistance in the US have treated the programs as though they were competitors serving contradictory or exclusive ends.