(I): Socialization
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University of Warwick institutional repository: http://go.warwick.ac.uk/wrap A Thesis Submitted for the Degree of PhD at the University of Warwick http://go.warwick.ac.uk/wrap/65113 This thesis is made available online and is protected by original copyright. Please scroll down to view the document itself. Please refer to the repository record for this item for information to help you to cite it. Our policy information is available from the repository home page. The People’s Republic of China and the IMF By Jue Wang A thesis submitted in fulfillment of the requirements for the degree of Doctor of Philosophy in Politics and International Studies University of Warwick Department of Politics and International Studies (PAIS) September 2014 1 Table of Contents List of Abbreviations ........................................................................................................ 5 Acknowledgements ........................................................................................................... 7 Declarations ....................................................................................................................... 8 Abstract .............................................................................................................................. 9 Chapter 1 - Introduction ..................................................................................................... 10 1 Research Objective ..................................................................................................................... 16 1.1 Research Scope ...................................................................................................................................... 16 1.2 Research Design .................................................................................................................................... 18 1.3 Research Questions .............................................................................................................................. 22 2 Literature Review ....................................................................................................................... 23 2.1 Literature on the IMF and China’s participation in the IMF ............................................... 23 2.2 Literature on Relationships Between China and International Institutions ............... 33 2.3 Literature on socialization theory ................................................................................................. 37 2.4 Literature on Principal-Agent Theory .......................................................................................... 42 3 Research Method ........................................................................................................................ 46 3.1 Document Research ............................................................................................................................. 47 3.2 Other Secondary Sources ................................................................................................................... 48 3.3 Tertiary Sources .................................................................................................................................... 49 3.4 Elite Interview ........................................................................................................................................ 50 3.5 Importance of using a mixture of research methods ............................................................ 51 4 Contribution of the Thesis ....................................................................................................... 52 5 Thesis Outline .............................................................................................................................. 55 Chapter 2 - Theoretical Approach (I): Socialization ................................................. 58 1 Introduction ................................................................................................................................. 58 2 Socialization Approach and Relationships Between States and International Organizations .................................................................................................................................. 62 2.1 Conditions of Socialization ................................................................................................................ 64 3 Processes of Socialization ........................................................................................................ 69 3.1 Mimicking ................................................................................................................................................. 70 3.2 Social Influence ...................................................................................................................................... 71 3.3 Persuasion ................................................................................................................................................ 73 4 Limitation of Socialization Approach ................................................................................... 74 5 Conclusion: Using Socialization Approach to Analyze the China-IMF Relationship .............................................................................................................................................................. 82 Chapter 3 - China joins the IMF: Socialization or Else .............................................. 87 1 Introduction ................................................................................................................................. 87 2 Initial Contact and Engagement ............................................................................................. 91 2.1 The IMF ...................................................................................................................................................... 91 2.2 China ........................................................................................................................................................... 92 2.3 Initial Contact and Engagement ...................................................................................................... 94 2.4 Context for Socialization .................................................................................................................... 97 3 China-IMF Interactions: Did Socialization Happen? ..................................................... 102 2 3.1 Financial Assistance .......................................................................................................................... 102 3.2 Technical Assistance ......................................................................................................................... 105 3.3 Policy Advice ........................................................................................................................................ 110 3.4 Inadequate Policy Advice and Unsuccessful Socialization ............................................... 118 4 Is Socialization a Good Approach to Analyzing the China-IMF Relationship? ...... 133 4.1 Measure of Normative Factors ..................................................................................................... 135 4.2 Material and Non-material Impacts ........................................................................................... 136 4.3 Other Factors than IMF Socialization ........................................................................................ 137 4.4 State as a Strong-minded and Self-determined Member .................................................. 139 5 Conclusion: China’s Objectives and A Different View of the China-IMF Relationship ................................................................................................................................... 144 Chapter 4 - Theoretical Approach (II): Principal-Agent Theory ......................... 147 1 Introduction ............................................................................................................................... 147 2 Principal-Agent Theory .......................................................................................................... 150 3 Delegation ................................................................................................................................... 153 3.1 Reasons to Delegate .......................................................................................................................... 155 4 Actors in the Principal-Agent Framework ....................................................................... 161 4.1 Principal ................................................................................................................................................. 163 4.2 Agent ........................................................................................................................................................ 167 4.3 Third Party Actors ............................................................................................................................. 171 5 Principal-Agent Theory As an Analytical Tool ................................................................ 171 6 Use Principal-Agent Theory to Analyze the Relationship between China and the IMF ..................................................................................................................................................... 178 7 Conclusion ..................................................................................................................................