Transnational Activist Networks and Rising Powers: Transparency and Environmental Concerns in the Brazilian National Development Bank

Abstract

This article studies how transnational advocacy networks can influence international development finance. Transnational activists shaped the World Bank's lending by increasing its transparency and limiting its socioenvironmental impacts. Developing countries can now look toward rising powers’ national development banks to finance their infrastructure and energy projects. The national development banks’ weak transparency and socioenvironmental standards pose a new challenge for transnational activism. Can activists leverage strategies used in World Bank reform to influence emerging power national development banks? We argue that whether a target is a supranational or national institution shapes the deployment and effectiveness of the strategies activists can use for influence. A supranational mandate and structure facilitates the deployment and effectiveness of a direct strategy focused on the transnational level, targeting the bank itself, and an indirect strategy focused on the national contexts of the bank's shareholders and borrowers. In contrast, a national mandate and structure encourages activists to deploy influence strategies solely in the context of the lending state. They furthermore make indirect strategies more effective than direct ones. We illustrate our argument by exploiting variation in the success across campaigns of a transnational network created to reform the Brazilian National Development Bank.