Chapter

Disciplining the Banks

in Behind the Development Banks

Published by University of Chicago Press

Published in print June 2009 | ISBN: 9780226033648
Published online March 2013 | e-ISBN: 9780226033679 | DOI: http://dx.doi.org/10.7208/chicago/9780226033679.003.0005
Disciplining the Banks

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This chapter describes the Treasury testimonies to Congress in the 1980s to explore the first Ronald Reagan administration's policies toward the multilateral development banks (MDBs). The first Reagan administration's relative quiescence on structural adjustment can be attributed to ambivalence about policy-based lending, both within the administration and among members of Congress. It is shown that, for the first several years after the debt crisis began, the golden opportunity to use the MDBs to leverage policy reforms was not fully exploited. The pattern of U.S. voting on project loans provides an incomplete sense of overall U.S. pressures. The Reagan team's pattern of voting on the boards of the MDBs sent a strong message that the United States was committed to bringing sound economics to developing countries. It appears that, where program lending was concerned, the first Reagan administration may have been an inconsistent advocate at best.

Keywords: Treasury testimonies; Congress; Reagan administration; policy-based lending; leverage policy reforms

Chapter.  10921 words. 

Subjects: Political Economy

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