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Give Trust a Chance; A Model of Trust in the Context of An Imf-Supported Program

  • Daouda Sembene
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    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.

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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=20442
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    Paper provided by International Monetary Fund in its series IMF Working Papers with number 07/42.

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    Length: 30
    Date of creation: 01 Feb 2007
    Date of revision:
    Handle: RePEc:imf:imfwpa:07/42
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    1. Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer & Robert W. Vishny, 1996. "Trust in Large Organizations," NBER Working Papers 5864, National Bureau of Economic Research, Inc.
    2. Eric Santor, 2006. "Governance and the IMF: Does the Fund Follow Corporate Best Practice?," Working Papers 06-32, Bank of Canada.
    3. repec:imf:imfwpa:02/33 is not listed on IDEAS
    4. Hong, Kesseley & Bohnet, Iris, 2004. "Status and Distrust: The Relevance of Inequality and Betrayal Aversion," Working Paper Series rwp04-041, Harvard University, John F. Kennedy School of Government.
    5. Alberto Alesina & Eliana La Ferrara, 2000. "The Determinants of Trust," NBER Working Papers 7621, National Bureau of Economic Research, Inc.
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