Economic Sanctions and the Politics of IMF Lending

What effect do economic sanctions have on the IMF lending decisions? Though countries under economic sanctions often face significant economic and financial difficulties, no comprehensive research to date has explored whether the IMF as a de facto lender of last resort intervenes in those countries in need. We posit that economic coercion is likely to hinder the target’s access to IMF credits as sanctioning (sender) countries are likely to use their political influence in the IMF to deny funds to the destabilized target economies. To assess the empirical merits of the hypothesis, we combine data on the IMF lending with the economic sanctions data for 120 emerging market economies from 1975 to 2005. Results indicate that target countries are less likely to receive IMF funds, especially when under sanctions by the United States and international institutions. Our findings contradict the conventional wisdom that the IMF is tasked with providing lifelines to member governments in need of help to ease their short-term balance of payment problems. Further, as much as IMF loans can be used as positive inducements to acquire a country’s strategic cooperation, we show that they might also be used by sender countries as a punishment tool against target countries to amplify the impact of sanctions regimes.     

Democracy,autocracy and the news: the impact of regime type on media freedom

Mass media is critical for the functioning of every contemporary political system. Thus, we can expect a variation in media freedom depending on the type of government since political regimes differ with regard to the political, legal and economic framework in which news coverage operates. This article investigates the effects of regime types, namely democracy and autocratic subtypes, on media freedom. It is argued that regime legitimation and governance are the driving forces behind diverging media policies in autocracies. From this theory, hypotheses regarding media freedom and regime type are derived and tested empirically, relying on statistical analyses that cover 149 countries over a period from 1993 to 2010. The empirical results demonstrate that democracies lead to significantly higher levels of media freedom than autocracies, with other things being equal. Within the autocratic spectrum, electoral autocracies, monarchies and military regimes have the freest media, whereas the most illiberal media can be found in communist ideocracies, where the ruling party holds a communication monopoly. Media freedom in personalist and non-ideological one-party regimes is on an intermediate level.     

Explaining Myanmar's regime transition: the periphery is central

In 2010, Myanmar (Burma) held its first elections after 22?years of direct military rule. Few compelling explanations for this regime transition have emerged. This article critiques popular accounts and potential explanations generated by theories of authoritarian “regime breakdown” and “regime maintenance”. It returns instead to the classical literature on military intervention and withdrawal. Military regimes, when not terminated by internal factionalism or external unrest, typically liberalize once they feel they have sufficiently addressed the crises that prompted their seizure of power. This was the case in Myanmar. The military intervened for fear that political unrest and ethnic-minority separatist insurgencies would destroy Myanmar's always-fragile territorial integrity and sovereignty. Far from suddenly liberalizing in 2010, the regime sought to create a “disciplined democracy” to safeguard its preferred social and political order twice before, but was thwarted by societal opposition. Its success in 2010 stemmed from a strategy of coercive state-building and economic incorporation via “ceasefire capitalism”, which weakened and co-opted much of the opposition. Having altered the balance of forces in its favour, the regime felt sufficiently confident to impose its preferred settlement. However, the transition neither reflected total “victory” for the military nor secured a genuine or lasting peace.     

The Catalytic Effect of IMF Lending: Evidence from Sectoral FDI Data

Our study contributes to the search for the elusive catalytic effect of International Monetary Fund (IMF) lending on inflows of foreign direct investment (FDI). Recent scholarship has found that the catalytic effect is conditional on political regime and program stringency. We contribute to this literature by developing and testing a theory which describes how the catalytic effect also varies by economic sector. This is a departure from existing studies, which have tended to focus on aggregate FDI flows after crises. Our findings corroborate previous research, which finds that in general IMF lending has a substantial and negative effect on FDI. However, we find that the negative effect is concentrated in sectors that are highly dependent on external capital and have low sunk costs in the host country. Our findings are robust to several alternative explanations common in IMF literature, namely the importance of IMF program design and the ability of governments to make credible commitments to reform. Substantively, our findings suggest that investors are more likely to use IMF lending as an escape hatch in countries where FDI is dependent on external capital and has low sunk costs.     

War, Peace, and the Invisible Hand: Positive Political Externalities of Economic Globalization

Studies of signaling in international relations reveal how punishing bluffing ex post through domestic audience costs or opposition groups facilitates credible ex ante communication among states and reduces the impetus toward war. Global integration of economic markets may also reduce uncertainty by making talk costly ex ante. Autonomous global capital can respond dramatically to political crises. To the degree that globalization forces leaders to choose between pursuing competitive political goals and maintaining economic stability, it reveals the intensity of leaders' preferences, reducing the need for military contests as a method of identifying mutually acceptable bargains. Asymmetric integration can dampen the pacific effects of globalization, but asymmetry does not in itself exacerbate dispute behavior. We present the theory and offer preliminary corroborative tests of implications of the argument on postwar militarized disputes.     

Conditional on Conditionality: IMF Program Design and Foreign Direct Investment

The article explores how International Monetary Fund (IMF) program design influences foreign direct investment inflows. The author argues that stricter IMF conditionality signals a program-participating government's commitment to economic reforms, as it incurs larger ex ante political cost and risks greater ex post political cost. Thus, the catalytic effect of an IMF program is conditional on conditionality: programs with stricter conditions catalyze more foreign direct investment than those with less stringent conditions. Empirical analysis of the IMF conditionality dataset supports the argument and shows that after accounting for IMF program participation, the more structural conditions included in an IMF program, the more foreign direct investment flows into the country.     

Class war-on-terror: counterterrorism,accumulation, crisis

This article discusses US counterterrorism from a class perspective. It sees counterterrorism as a state policy with differential effects on different social classes. In doing so, the article starts to address a lacuna in critical studies of counterterrorism, which tend to be rather structural and formal, thus ignoring the pertinence of counterterrorism to the field of social dynamics. To partly rectify this blind spot by addressing some class implications of counterterrorism, the article examines the effects of counterterrorism policy on capital accumulation and its social conditions. It notes that counterterrorism has different implications along class-lines: for dominant capital, it signifies appropriation of public money and direct participation in political decisions; for everyone else, it means material dispossession and political exclusion. Given that counterterrorism was developed between two crises of neoliberalism, the article distinguishes between economic crises, which tend to benefit capitalism, and political crises, which can be destructive, and suggests that counterterrorism is partly a restructuring of the neoliberal state so that it can manage recurring economic crises, while preventing their evolution into political ones.     

IMF program compliance: Aggregate index versus policy specific research strategies

Consensus has grown that the economic reform programs of the International Monetary Fund (IMF) have failed to promote economic development. There is little consensus about how IMF programs should be reformed, however, because we do not understand why IMF programs have failed. Some critics contend that the IMF’s austere policy conditions are inappropriate for most program-countries and cause economic crises to deepen. Other critics argue that the policy conditions are actually ignored, and the IMF program loan ends up subsidizing the bad policies that caused the economic crises in the first place. This debate begs the compliance question. Unfortunately, the study of IMF compliance is not straightforward. IMF agreements span many dimensions, and the dimensions vary from agreement to agreement. Even along one dimension, governments are not held to the same standard. Rather than look at aggregate measures of compliance, this article proposes a return to studying specific conditions as was done in the earliest studies on IMF compliance.      

Do multiparty elections improve human development in autocracies?

Improvements in human development under democratic institutions are often attributed to electoral contestation. We evaluate the effect of multiparty contestation on infant mortality in the authoritarian context. Contrary to what extant scholarship argues, we find no evidence that multiparty elections in authoritarian regimes reduce infant mortality. Specifically, we show that electoral autocracies do not produce better infant mortality outcomes compared to closed autocracies holding no multiparty elections. We also demonstrate a non-monotonic effect of electoral competition on infant mortality: Infant mortality increases in levels of electoral contestation common in electoral authoritarian regimes and decreases only at levels of contestation that are nearly exclusive to democracies. Finally, we show that increases in infant mortality in electoral authoritarian regimes operate partially through increased political violence and reduced state capacity.     

Regime Instability,Leader's Affiliation,and Organizational Culture: Why Are Military Dictatorships More Likely to Initiate Militarized Interstate Disputes? An Empirical Analysis, 1975–2006

Prior studies find that military dictatorships display a high propensity to initiate militarized interstate disputes (MIDs). Yet, there is little agreement on which feature of military regimes can best explain this behavior. This article distinguishes between three potential causes: coup risk, the dictator's affiliation with the military, and the military's influence on politics. Using recent data on authoritarian regimes, I find that, whereas coup risk is a strong predictor of conflict initiation, the dictator's affiliation does not affect his foreign policy. Furthermore, I find tentative evidence that the military's influence on domestic politics has a negative effect on MID initiation. These findings thus challenge the view that military regimes' foreign policy is due to the military's organizational culture: the relationship between military regimes and dispute initiation seems to be due to factors that simply happen to add up in military autocracies but are essentially unrelated to regime type.     

International conflict,military rule,and violent authoritarian breakdown

ABSTRACT

Why do some transitions of power from military rule occur violently while others do not? What effect, if any, does the international security environment have on how violent breakdowns of authoritarian rule are? I argue a conflict-prone security environment ameliorates the commitment problem by ensuring an influential role for the military out of power. Therefore, when facing a domestic crisis in a threatening security environment, military leaders are more likely to peacefully cede power rather than wield violent measures to stay in office. Perhaps counter-intuitively, international conflicts thus lead to transitions of power from military rule that minimize violence and human costs. International conflicts do not have this moderating effect on other types of authoritarian rule.     

The U.S. press and political change in the Third World: The coverage of military coups

One of the chief features of the Third World is how often regimes change. These regime changes have many implications both for internal political stability in the Third World and in the relationships between the Third World and the superpowers. In the United States, it is generally the media that inform the American people about these changes and their implications for the United States. This paper analyzes the coverage of the two most recent military coups in Nigeria by the U.S. press.

Our analysis indicates that if a government that is supportive of American interests is overthrown, and the personalities and policies of the new leaders are not readily apparent to the press, the change is greeted with hostilities by the U.S. press. However, as soon as it becomes apparent that the new regime will not threaten the economic and political interests of the United States, the press rallies behind the new regime and begins to proclaim it as a savior. The press lamented the overthrow of Shagari's government and proclaimed the coup a setback for democracy in Africa. However, within a few weeks of this judgement, the coup that overthrew President Shagari was hailed as necessary for the political stability and economic prosperity of Nigeria. When the military government that seized power from Shagari was itself thrown out of office in a military coup, the new regime was welcomed by the press. We also found the U.S. press utilizes a biased and distorted framework in its coverage of political events in the Third World. The framework used in the Nigerian case asserts that all economic and political crises emanate from tribalism, corruption, and the criminal tendencies of Nigerians. We argue in this paper that this perspective, which informs the coverage of political events in Nigeria by the U.S. press, does not allow it to present valid and truthful explanations of political changes in Nigeria. We also argue that this shallow coverage is done deliberately so as to obscure the reality of political struggles in Nigeria. We assert that it is in the interests of both the Nigerian ruling class and international capitalism to attribute economic and political crises in Nigeria to tribalism, corruption, and nepotism.     

The Effect of IMF Programs on Women’s Economic and Political Rights

Though much research has been devoted to the socioeconomic and political consequences of International Monetary Fund (IMF) programs for recipient countries, little is known about the impacts of these programs on the level of respect for women’s rights. We postulate that IMF-induced policy reforms of privatization and public spending cuts, and the growing political repression and instability following the implementation of IMF programs, undermine the government’s ability and willingness to protect women’s economic and political rights. To substantiate the theoretical claims, we combine data on women’s political and economic rights with data on IMF programs for the years 1981–2004. Our findings suggest that IMF involvement is likely to deteriorate the level of respect for women’s economic rights while having no discernible effect on women’s political rights. The results further indicate that the effect of these programs is not conditioned by political regime type and economic wealth of recipient countries. One major policy implication of our findings is that the IMF should start to recognize that the conditions attached to lending programs might be implemented at the expense of women’s economic rights and that more explicit protections of women’s rights need to be included in program negotiations.     

Who Can Reform the Labor Market? IMF Conditionality,Partisanship, and Labor Unions

Labor market reforms are critical for economic growth. Yet, they are politically contentious, and governments, more often than not, are faced with strong opposition from interest groups. Scholarly work shows that governments often rely on external intervention to implement politically difficult reforms. This is the case with the International Monetary Fund (IMF) that typically conditions its financing on the implementation of required reforms. Do borrowing governments benefit from IMF programs to overcome domestic opposition to reform by organized interests? Utilizing a unique new data set on IMF conditionality, I show that partisan and electoral concerns and domestic alliances strongly affect the implementation of labor market reforms, even when the IMF imposes them. When faced with increasing number of strikes, left-wing governments are more likely to implement labor market reforms than center/right-wing governments. However, the left is less likely than the center/right to fulfill its international commitments during election years when labor groups are militant. These findings highlight the left’s unique ability to form pro-reform coalitions and the IMF’s conditional role in removing domestic political opposition to reform. Counter-intuitively, right-wing governments still struggle to reform the labor market, even during economic crises and under IMF programs.     

The Economic Leverage of International Organizations in Interstate Disputes

Addressing a long-standing debate in international relations scholarship, this study shows that international governmental organizations (IGOs) with high economic leverage over their member states, such as some development banks, substantially lower the risk that political disputes experience the use of military force. Empirical tests covering cases of disputatious claims and international crises since 1946 make use of a new classification of IGOs that have economic leverage and use it toward increasing states’ cost of using force in disputes. When pairs of states are subject to the economic leverage of IGOs, they are substantially less likely to use force. For the understanding and practice of interstate dispute resolution and international conflict more generally, the study suggests a specific linkage between institutionalized economic interdependence and conflict escalation.     

Public Goods or Political Pandering: Evidence from IMF Programs in Latin America and Eastern Europe

This article uses empirical evidence from Latin American and East European International Monetary Fund (IMF) programs from 1982 to 2001 to analyze the nature and the extent of preferential lending practices by the IMF. Unlike prior work, which focused on narrow political interference from large IMF member states, the present analysis differentiates between such narrow interests and the Fund's international systemic responsibilities, which may justify the preferential treatment of systemically important countries to prevent broader regional or global crises. The empirical results suggest that systemically based deviations from technocratic impartiality predominate in situations—such as the Latin American debt crisis—where international financial stability is under serious threat. Under such circumstances, economically important countries do receive preferential IMF treatment but only when experiencing severe crises, while narrow "private goods" considerations are largely sidelined. When systemic threats are less immediate—such as in Latin America and Eastern Europe in the 1990s—IMF favoritism reflects a more volatile and region-specific mix of private and public considerations in line with the changing interests of powerful Western nations in the developing world.     

Does Democratization Reduce the Risk of Military Interventions in Politics in Africa?

This article investigates whether there is an association between a trajectory of political liberalization, democratization, and military interventions. In what is arguably the ‘least likely case’ region in the world, this study analyzes the experience of 55 regimes in Africa between 1990 and 2004 and finds a striking regularity. Liberalizing, and in particular democratic, regimes have a significantly different track record of being subjected either to successful or failed military interventions. The analysis suggests that democratic regimes are about 7.5 times less likely to be subjected to attempted military interventions than electoral authoritarian regimes and almost 18 times less likely to be victims of actual regime breakdown as a result. Through an additional case study analysis of the ‘anomalous’ cases of interventions in democratic polities, the results are largely strengthened as most of the stories behind the numbers suggests that it is only when democratic regimes perform dismally and/or do not pay soldiers their salaries that they are at great risk of being overthrown. Legitimacy accrued by political liberalization seems to ‘inoculate’ states against military intervention in the political realm.     

Does economic inequality breed political inequality?

Does economic inequality generate political inequality? While there is a large literature on the effect of inequality on regime change and support for democracy, there is little research on its effect on political equality across socioeconomic positions. Yet democracy and political equality, although related, are distinct concepts. While political power tends to be more evenly distributed in democracies than in autocracies, there is substantial variation in both regime types. This study argues that economic inequality should decrease political equality through multiple mechanisms: (1) it increases the resources of the rich relative to the poor; (2) it widens the gap in policy preferences across income groups; (3) it reduces participation; and (4) it depresses support for democracy. Using three measures of inequality and data on more than 140 countries between 1961 and 2008, it was found that economic inequality tends to increase political inequality, even when one controls for the level of democracy. Results hold when the sample is restricted by regime type. Finally, evidence in favour of the mechanisms is provided.     

Two dimensions of democracy and the economy

Does democracy influence economic policymaking and outcomes? Our study investigates the implications of Dahl's two dimensions of democracy (‘polyarchy’): contestation/competition and inclusion/participation. We hypothesize that increases in democratic competition inspire policy incrementalism, thus lowering growth volatility and generating fewer deep crises. Meanwhile, increases in substantive democratic inclusion – genuine political voice, or democratic participation in the presence of a minimum of contestation – should increase the political weight of relatively poor voters, who have a differentially strong aversion to deep growth crises. A statistical analysis of 149 countries for 1961–98 finds greater democracy associated with fewer years of sharply negative growth (‘crisis’), with both democratic contestation and substantive inclusion contributing to this outcome. Our conclusions question the wisdom of designing economic policy institutions that are intentionally insulated from the democratic process.     

面对21世纪中俄经贸合作问题的思考

叶利钦时期．中俄两国构建的战略协作伙伴关系．较多地体现在政治、军事和外交方面。经贸合作是个薄弱领域。普京执政后。对华关系的基本框架不会发生大的变化。但考虑到普京在摆脱经济危机和恢复俄罗斯强国地位方面。有着强烈的危机感和迫切感．因此、他的对华政策将具有务实性和转向以经济利益为中心的特点。近年来．两国经贸关系明显落后于政治关系。长期发展下去．有可能影响和削弱中俄政治关系的发展。进入２１世纪之际。中俄加强经贸合作．不仅有利于中国经济实现可持续增长和俄经济的复苏、而且还可以进一步巩固和发展两国的政治关系。当前。为把中俄经贸合作推上一个新的高度,应采取一些新的思路和对策：（一）要统一认识．即认识到中俄经贸关系落后于政治关系是客观存在的事实。有鉴于此．才需要我们将两国经贸合作推向一个新水平;（二）要有一个发展双边经贸合作的长期战略规划;（三）要上大项目：（四）加强对俄高科技合作．如在哈尔滨市与俄共建“中俄高新技术合作中心”; （五）大力研究与认真落实省、州合作、鼓励并推动地方政府发展区域合作。如吸引俄资本与技术参与我国西部大开发．尤其应将西伯利亚与远东地区作为区域合作的重点。特别应指出的是：没有我方与俄远东地区融洽的政治