Give Trust a Chance—A Model of Trust in the Context of an IMF-Supported Program
February 1, 2007
Download PDF
More Formats on IMF eLibrary
Order a Print CopyDisclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary
This paper is an attempt to identify the determinants of trust between country authorities and IMF staff in the context of an IMF-supported program. Using an outcomes-based definition of trust, a game-theoretic model is developed to compute the level of trust between the two parties. The results and the analysis of trust-related issues emerging in a program context suggest that trust between country authorities and IMF staff exerts a positive impact on the likelihood of program success through its ability to improve the quality of the design, the efficiency of negotiation, and the effectiveness of implementation of an IMF-supported program. Some initiatives to secure such benefits and enhance trust in staff are proposed.
Subject: Crisis resolution, Structural policies, Tax incentives
Keywords: country authorities, IMF staff, program country, staff's advice, WP
Pages:
30
Volume:
2007
DOI:
Issue:
042
Series:
Working Paper No. 2007/042
Stock No:
WPIEA2007042
ISBN:
9781451866063
ISSN:
1018-5941
