Review of International Political Economy· 2026Q1
Buying cooperation: financial inducements and the reconstruction of relations between major powers
- 0citations
- Q1SCImago
- 2026year
Short summary
Financial inducements can successfully promote cooperation between major powers when target states face severe financial challenges, lack alternative creditors, and have low risks of future conflict, potentially reconstructing relations on more cooperative terms.
AI-generated from the title and abstract; the full text is not read.
Key points
- Financial inducements can be effective tools for influencing major power security and foreign policies.
- Success hinges on target states facing serious financial challenges and lacking alternative creditors.
- A low risk of future conflict and cheating is crucial for the efficacy of financial inducements.
- Successful inducements can lead to the reconstruction of major power relations in more cooperative directions.
AI-generated from the title and abstract; the full text is not read.
Abstract
Creditor states have used financial inducements in an attempt to influence the security and foreign policies of their indebted peers for centuries. We examine when inducements are effective and whether they can promote cooperation. Analysis of three cases involving major powers – the United Kingdom’s use of cheap capital to help secure a favorable peace treaty with the United States (1871–1872), the United States’ unsuccessful offer of a reconstruction loan to the Soviet Union (1943–1946), and West Germany’s offers of loans to the Soviet Union to enhance post-Cold War cooperation (1989–1990) – illuminates the viability and relational effects of financial inducements. We argue that success depended on the confluence of facilitating conditions – target states facing serious financial challenges that require external financing, the absence of other suitable creditors, and a low risk of future conflict and cheating. Our research also highlights the importance of second order effects. Financial inducements can help to facilitate the reconstruction of major power relations in more cooperative terms.
The authors' abstract, as published at the source. Review of International Political Economy, 2026 · DOI ↗
Continue with a free account
Ask the paper: 3 free questions a day about this paper; save it, get its citation, new summaries every day for your field. Takeaways are Premium.
Continue free on the webSign in with Google or Apple; no card needed. You come back to this paper.
On your phone:
Field: Strategy and Management
Strategy and ManagementBusiness, Management and Accounting