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.