Working Paper: NBER ID: w10927
Authors: Allan Drazen; Peter Isard
Abstract: We use the concepts of deliberative democracy from political science and cheap talk from economics to develop a better understanding of how public discussion can contribute to building and demonstrating ownership of IMF programs and hence to program success. We argue that ownership is more complex than many discussions of it would suggest, since it must include not only the willingness to carry out a program, but also the technical capacity and especially the political ability to do so. Public discussion can serve a number of purposes, each of which can be better understood by moving to a more formal treatment. We illustrate our points by means of simple examples. We also consider some of the drawbacks of public discussion, especially as applied to IMF programs.
Keywords: Public Discussion; IMF Programs; Program Ownership; Deliberative Democracy
JEL Codes: D72; D74; F34
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| public discussion (Y70) | enhanced program ownership (J54) |
| public discussion (Y70) | increased public support for IMF programs (F33) |
| increased public support for IMF programs (F33) | successful implementation (D78) |
| public discussion (Y70) | reveal public preferences and constraints (D10) |
| reveal public preferences and constraints (D10) | adjust program designs (C90) |
| adjust program designs (C90) | enhanced program ownership (J54) |
| public discussion (Y70) | demonstrate unbiasedness of policymakers (D72) |
| demonstrate unbiasedness of policymakers (D72) | build trust and legitimacy (O17) |
| build trust and legitimacy (O17) | enhanced program ownership (J54) |
| public discussion (Y70) | potential negative implications for program design (C90) |