Multilateral Development Banks: Counter-cyclical Mandate and Financial Constraints

Detalhes bibliográficos
Autor(a) principal: Molinari,Andrea
Data de Publicação: 2020
Outros Autores: Patrucchi,Leticia
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Contexto Internacional
Texto Completo: http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0102-85292020000300597
Resumo: Abstract Given their attractiveness as a source of financing for the least developed countries, multilateral development banks (MDBs) have grown in quantity and size supported by their sources of financing. We believe that this ‘resource dependency’ has not been sufficiently questioned in the literature, especially regarding the credit exposure these organizations have with their largest borrowing members. This article characterizes and identifies the differential effects of the three sources that make up the dependence on resources in the MDBs: capital contributions, leverage in the markets and their credit function. We analysed these sources particularly at the International Development Bank (IBRD), the Inter-American Development Bank (IDB) and the African Development Bank (AfDB) and in two recent events: the risk exchange implemented by the referred MDBs in 2015 and the effect of the Argentina’s selective default on the IDB’s capital adequacy (2014). We find an increasing relevance of leverage and the size of loans, which models a dependence on resources that weakens the development mandate of these organizations.
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spelling Multilateral Development Banks: Counter-cyclical Mandate and Financial Constraintsmultilateral development banksresource dependenceconditionalitiesmarket riskdevelopment mandate.Abstract Given their attractiveness as a source of financing for the least developed countries, multilateral development banks (MDBs) have grown in quantity and size supported by their sources of financing. We believe that this ‘resource dependency’ has not been sufficiently questioned in the literature, especially regarding the credit exposure these organizations have with their largest borrowing members. This article characterizes and identifies the differential effects of the three sources that make up the dependence on resources in the MDBs: capital contributions, leverage in the markets and their credit function. We analysed these sources particularly at the International Development Bank (IBRD), the Inter-American Development Bank (IDB) and the African Development Bank (AfDB) and in two recent events: the risk exchange implemented by the referred MDBs in 2015 and the effect of the Argentina’s selective default on the IDB’s capital adequacy (2014). We find an increasing relevance of leverage and the size of loans, which models a dependence on resources that weakens the development mandate of these organizations.Pontifícia Universidade Católica do Rio de Janeiro, Instituto de Relações Internacionais2020-12-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0102-85292020000300597Contexto Internacional v.42 n.3 2020reponame:Contexto Internacionalinstname:Pontifícia Universidade Católica do Rio de Janeiro (PUC-RIO)instacron:PUC_RIO10.1590/s0102-8529.2019420300004info:eu-repo/semantics/openAccessMolinari,AndreaPatrucchi,Leticiaeng2020-11-25T00:00:00Zoai:scielo:S0102-85292020000300597Revistahttp://contextointernacional.iri.puc-rio.br/cgi/cgilua.exe/sys/start.htm?tpl=homePUBhttps://old.scielo.br/oai/scielo-oai.phpcintjournal@puc-rio.br||contextointernacional@puc-rio.br1982-02400102-8529opendoar:2020-11-25T00:00Contexto Internacional - Pontifícia Universidade Católica do Rio de Janeiro (PUC-RIO)false
dc.title.none.fl_str_mv Multilateral Development Banks: Counter-cyclical Mandate and Financial Constraints
title Multilateral Development Banks: Counter-cyclical Mandate and Financial Constraints
spellingShingle Multilateral Development Banks: Counter-cyclical Mandate and Financial Constraints
Molinari,Andrea
multilateral development banks
resource dependence
conditionalities
market risk
development mandate.
title_short Multilateral Development Banks: Counter-cyclical Mandate and Financial Constraints
title_full Multilateral Development Banks: Counter-cyclical Mandate and Financial Constraints
title_fullStr Multilateral Development Banks: Counter-cyclical Mandate and Financial Constraints
title_full_unstemmed Multilateral Development Banks: Counter-cyclical Mandate and Financial Constraints
title_sort Multilateral Development Banks: Counter-cyclical Mandate and Financial Constraints
author Molinari,Andrea
author_facet Molinari,Andrea
Patrucchi,Leticia
author_role author
author2 Patrucchi,Leticia
author2_role author
dc.contributor.author.fl_str_mv Molinari,Andrea
Patrucchi,Leticia
dc.subject.por.fl_str_mv multilateral development banks
resource dependence
conditionalities
market risk
development mandate.
topic multilateral development banks
resource dependence
conditionalities
market risk
development mandate.
description Abstract Given their attractiveness as a source of financing for the least developed countries, multilateral development banks (MDBs) have grown in quantity and size supported by their sources of financing. We believe that this ‘resource dependency’ has not been sufficiently questioned in the literature, especially regarding the credit exposure these organizations have with their largest borrowing members. This article characterizes and identifies the differential effects of the three sources that make up the dependence on resources in the MDBs: capital contributions, leverage in the markets and their credit function. We analysed these sources particularly at the International Development Bank (IBRD), the Inter-American Development Bank (IDB) and the African Development Bank (AfDB) and in two recent events: the risk exchange implemented by the referred MDBs in 2015 and the effect of the Argentina’s selective default on the IDB’s capital adequacy (2014). We find an increasing relevance of leverage and the size of loans, which models a dependence on resources that weakens the development mandate of these organizations.
publishDate 2020
dc.date.none.fl_str_mv 2020-12-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
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status_str publishedVersion
dc.identifier.uri.fl_str_mv http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0102-85292020000300597
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dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 10.1590/s0102-8529.2019420300004
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv text/html
dc.publisher.none.fl_str_mv Pontifícia Universidade Católica do Rio de Janeiro, Instituto de Relações Internacionais
publisher.none.fl_str_mv Pontifícia Universidade Católica do Rio de Janeiro, Instituto de Relações Internacionais
dc.source.none.fl_str_mv Contexto Internacional v.42 n.3 2020
reponame:Contexto Internacional
instname:Pontifícia Universidade Católica do Rio de Janeiro (PUC-RIO)
instacron:PUC_RIO
instname_str Pontifícia Universidade Católica do Rio de Janeiro (PUC-RIO)
instacron_str PUC_RIO
institution PUC_RIO
reponame_str Contexto Internacional
collection Contexto Internacional
repository.name.fl_str_mv Contexto Internacional - Pontifícia Universidade Católica do Rio de Janeiro (PUC-RIO)
repository.mail.fl_str_mv cintjournal@puc-rio.br||contextointernacional@puc-rio.br
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