{
  "title": "Efficiency and Legitimacy: Trade-Offs in IMF Governance",
  "publication": "IMF Working Papers, June 1, 2005",
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  "summary": "Designing appropriate governance structures for an international financial institution such as the IMF is difficult, because steps to enhance the legitimacy of such an institution through constraints on its decision-making process may affect its operational efficiency.",
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    {
      "heading": "Summary and central argument",
      "content": "- Designing appropriate governance structures for an international financial institution such as the IMF is difficult, because steps to enhance the legitimacy of such an institution through constraints on its decision-making process may affect its operational efficiency.\n- Potential trade-offs between legitimacy and efficiency exist for any public institution but are arguably more severe for an international one, because delegating power to it [is] politically controversial and, thus, likely to imply tighter constraints.\n- The trade-offs are not absolute: they depend on the specific ways in which legitimacy is pursued—that is, on the specific constraints that are set.\n- Strategic reforms should aim at improving the terms of the trade-off by exploring steps that are Pareto-improving in the dimensions of legitimacy and efficiency."
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    {
      "heading": "Findings on legitimacy versus efficiency",
      "content": "- Constraints introduced to enhance legitimacy can reduce operational efficiency.\n- The severity of trade-offs is amplified for international institutions due to the political controversy of delegating power.\n- The nature and design of constraints determine whether trade-offs are strict or can be mitigated."
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      "heading": "Policy implications and recommended reform approach",
      "content": "- Seek reforms that improve the terms of the trade-off between legitimacy and efficiency.\n- Prioritize reforms that are Pareto-improving across legitimacy and efficiency dimensions.\n- Focus on the specific mechanisms and constraints through which legitimacy is pursued, as different constraints have different efficiency impacts.\n\n---\n\n Content in this bundle\n\n- Wp05107\n  - Wp05107 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp05107 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/efficiency-and-legitimacy-trade-offs-in-imf-governance-18250"
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    "Authors: Carlo Cottarelli",
    "Published: June 1, 2005",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451861266.001",
    "Designing appropriate governance structures for an international financial institution such as the IMF is difficult, because steps to enhance the legitimacy of such an institution through constraints on its decision-making process may affect its operational efficiency.",
    "Potential trade-offs between legitimacy and efficiency exist for any public institution but are arguably more severe for an international one, because delegating power to it [is] politically controversial and, thus, likely to imply tighter constraints.",
    "The trade-offs are not absolute: they depend on the specific ways in which legitimacy is pursued—that is, on the specific constraints that are set.",
    "Strategic reforms should aim at improving the terms of the trade-off by exploring steps that are Pareto-improving in the dimensions of legitimacy and efficiency.",
    "Constraints introduced to enhance legitimacy can reduce operational efficiency.",
    "The severity of trade-offs is amplified for international institutions due to the political controversy of delegating power.",
    "The nature and design of constraints determine whether trade-offs are strict or can be mitigated.",
    "Seek reforms that improve the terms of the trade-off between legitimacy and efficiency.",
    "Prioritize reforms that are Pareto-improving across legitimacy and efficiency dimensions.",
    "Focus on the specific mechanisms and constraints through which legitimacy is pursued, as different constraints have different efficiency impacts.",
    "**Wp05107**"
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