The Export Import Bank of the United States: decay or renewal?

Abstract

The Export-Import Bank of the U.S. (Eximbank) is a Federal government agency engaged in the financing of U.S. exports. It is entrusted with maintaining the competitiveness of U.S. exports in various key sectors of the economy. It is a product of F. D. Roosevelt's administration and recently celebrated its fiftieth birthday.

Over the years, Eximbank's missions and activities have changed, both expanding and curtailing its responsibilities. The Bank's reputation in business and government circles has been and continues to be high; however, in recent years, the Bank has been subject to criticism by the Reagan administration which contends that the financial costs of the Bank outweigh its benefits. The Reagan Administration suggested reforms designed to limit the role of the Bank including elimination of the direct loan program.

This thesis traces the development of Eximbank. It reviews literature on Eximbank. It sets forth the history of the Bank and discusses internal and external political and economic structures and processes. It explains some of the functional strengths and weaknesses that affect the Bank's behavior. It discusses four themes that have ordered the Bank's outlook, defined the Bank's priorities and influenced the Bank's performance: the organizational life cycle, the process of institutionalization, the public corporate orientation and the corporate characteristics; and the organizational-environmental adaptations. Finally, it reflects upon the Bank's ability to reformulate its activities and change its behavior for the politics and economics of the 1980s.