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.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
10927.
Length: Date of creation: Nov 2004 Date of revision: Handle: RePEc:nbr:nberwo:10927
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Find related papers by JEL classification: D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances F34 - International Economics - - International Finance - - - International Lending and Debt Problems
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Farrell, Joseph & Rabin, Matthew, 1996.
"Cheap Talk,"
Journal of Economic Perspectives,
American Economic Association, vol. 10(3), pages 103-18, Summer.
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