Context: Why do policies of international financial institutions sometimes appear lenient despite their mandate for reform? Our analysis reveals that U.S. alignment at the United Nations affects the stringency of World Bank loan conditions.
Methodology: We use a unique dataset tracking World Bank conditionalities and correlate them with UN voting patterns among borrower nations.
Findings: Countries voting in line with the U.S. receive fewer policy reform requirements, covering softer topics rather than strict reforms.
Mechanism: This effect does not stem from explicit trade favors but suggests subtle influence by U.S. preferences shaping program design through unconscious bias.
Implications: The study demonstrates how even independent bureaucracies can produce politically skewed outcomes when influenced indirectly.
