Why is there Multilateral Lending

摘要: Why should multilateral lending exist in a world where private capital markets are well developed and governments have their own bilateral aid programs? If by the World Bank, IMF, regional development banks has an independent rationale, it must rest on advantages generated nature of these institutions. There principle two such advantages. First, since information quality investment environments different countries is many ways collective good, agencies better position to internalize externalities that may arise. This creates rationale for terms provision, particularly monitoring government policies recipient countries. Second, as long retain some degree autonomy from them, interaction with countries, while official nature, can remain less politicized than inter- governmental links. turn endows advantage exercise conditionality, (that is, conditional changes policies). Neither potential much do per se. However, be required make agencies' tasks incentive compatible. The empirical analysis reveals little evidence acted catalyst flows.