Abstract

This study examines the relationship between shifts in political alignment towards the United States and changes in government expenditure allocations for International Monetary Fund (IMF, or ‘the Fund’) program countries. Previous literature has shown that countries politically aligned to the US receive IMF loans with fewer and less stringent conditions. Building on this, this study investigates whether changes in alignment toward the US effect spending priorities. We hypothesize that program countries who shift alignment towards the US will see an increase in their share of education expenditure, a decrease in their military expenditure, and an increase in education-to-military spending ratio. This study uses moderated regression analysis with fixed effects of panel data from 1993 to 2010, consisting of 316 country entities with 94 of these countries engaged in a Fund program for at least one year. Results show a positive and statistically significant relationship between an increase in alignment towards the US and an increase share of education spending, as well as an increase in ratio of education-to-military spending. These findings lend credence to the theory that intergovernmental organizations (IGOs) are instrumentalized by dominant states in the international system, allowing them to pursue foreign policy objectives that lead to unequitable outcomes for smaller states. While one state cannot wield unilateral control over an IGO, this study explores how political concerns of member states manifest in supranational contexts.

Advisor

Moledina, Amyaz

Department

Economics; Global and International Studies

Publication Date

2026

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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