Robert Wihtol (auth.)'s The Asian Development Bank and Rural Development: Policy and PDF

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Extra info for The Asian Development Bank and Rural Development: Policy and Practice

Sample text

This has given Congress, and particularly congressional opponents of multilateral aid, substantial leverage over the policies formulated by the administration. More importantly, the appropriation process has given the US leverage over the Bank and enabled US representatives to bring up policy issues in connection with funding negotiations, with the implicit threat of endangering not only the US contribution but the linked contributions of other donors. Rowley puts it more bluntly: 44 The ADB and Rural Development Washington's way of bringing the ADB to heel, as with the World Bank, is to drag its feet over contributions to their soft-loan windows, causing a delay in the linked contributions from the institutions' other membercountries, thereby gaining leverage to force its own policy prescriptions.

9 The voting power of the regional members, including Japan, Australia and New Zealand, has been well over 60 per cent, but it is considerably more significant that the donors have had continuous control over the Bank, with mean voting power of approximately 59 per cent compared with the DMCs' 41 per cent. Over time the DMCs' voting power has increased somewhat, most recently following the Bank's acceptance of China as a member in 1986. 0 Spain Sweden Switzerland UK us Grand total * Less than five hundredths of one per cent.

However, the formula does not reflect the real influence of the Bank's dominant donors as it takes account of neither special fund contributions, which in fact constitute a much larger financial contribution from donors than capital subscriptions, nor the weight carried by the potential threat that contributions will not be renewed unless the donors' policy requirements are met. In the negotiations on the drafting of the ADB charter, a number of decisions of key importance to the power structure and decisionmaking process of the Bank were worked out.

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