The United States and the Asian Development Bank

Abstract

This article deals with a largely unexplored topic related to the economics of American support for the idea of regional cooperation in Souflw.ast Asia in gvaeral and the Asian Development Bank in partictdar. The findings suggest that American involvement in ~pearheading the formation of the Bank and shaping its organizational structure and lending philosophy was motivated by a deshe to expand American economic influence in the region and to use that influence to further its economic and political interests h the region.|

Donor influence in multilateral development banks: The case of the Asian Development Bank

“…However, several studies of World Bank lending uncover patterns of apparent donor influence that reflect trade and commercial financial flows (Fleck & Kilby, 2006;Frey & Schneider, 1986;Weck-Hannemann & Schneider, 1991) and UN voting (Andersen et al, 2006). Japanese and U.S. influence is the focus of much of the literature on ADB governance (Dutt, 1997(Dutt, , 2001Krasner, 1981;Wan, 1995;Wihtol, 1988;Yasutomo, 1983Yasutomo, , 1995. Japan has significant sway because of its generous funding (especially for the ADF) and Bank staffing (Japanese president and close ties with Japan's Ministry of Finance).…”

“…U.S. influence derives from its leading economic and military position in world affairs, the ADB charter which gives the U.S. and Japan equal voting weights, and funding mechanisms which allow the most recalcitrant member-typically the U.S.-significant leverage (Wihtol, 1988). Mirroring patterns in bilateral aid, analysis of governance suggests that the ADB promotes both Japanese commercial interests and U.S. economic and geopolitical interests (Dutt, 1997(Dutt, , 2001Wihtol, 1988).…”

Informal influence in the Asian Development Bank

“…The ADB charter gives the U.S. and Japan equal voting weights and the organization's funding mechanisms allow the most recalcitrant member-typically the U.S.-significant leverage (Wihtol 1988). Analysis of the ADB's formal governance structure suggests that the institution serves both Japanese and U.S. interests (Dutt 1997(Dutt , 2001Wihtol 1988).…”

“…Research on ADB governance focuses primarily on Japanese and U.S. influence (Dutt 1997(Dutt , 2001Kilby 2006;Krasner 1981;Wan 1995;Wihtol 1988;Yasutomo 1983Yasutomo , 1995. Japan has significant sway for two key reasons: its generous funding of the ADF and technical assistance grants; and high ranking Japanese nationals in the Bank staffing (including the president).…”

The US and the Asian Development Bank: Origins, structure and lending operations

“…In addition, the United States by taking an active interest in the economic development of Asia could demonstrate to the world in general, and its Southeast Asian allies in particular, that its concern for the economic welfare of these countries extended beyond its immediate political and security preoccupations. It was possibly because of these reasons that President Johnson in a speech delivered at John Hopkins University in April 1965, declared that the United States was prepared to help regional self-help programmes 20 with a one billion dollar American investment. To implement this programme, he appointed Eugene Black as his special adviser on Southeast Asia.…”