ABSTRACT
In this chapter, the author distinguishes three different motives for exerting leverage. The first is self-interest: a desire on the donor’s part to induce the recipient to take some action favourable to the recipient’s interest. The second is a concern with the interests of the people of the recipient country which moves the donor to try and induce the recipient to pursue more equitable and liberal policies. There is, in addition, a third possible objective: to stimulate efficiency and good management on the part of the recipient. In certain circumstances, leverage is applied to discriminate between sectors within a country in order to further the donor’s self-interest. Many donors exert leverage not for their own self-interest but for that of the people of the recipient country — seeking to encourage social justice by providing or withholding aid. The author discusses the case for applying leverage in the interests of efficiency and good management.
