Hostname: page-component-586b7cd67f-dlnhk Total loading time: 0 Render date: 2024-11-28T18:18:56.270Z Has data issue: false hasContentIssue false

International Organizations as Policy Advisors

Published online by Cambridge University Press:  10 October 2012

Songying Fang
Affiliation:
Rice University, Houston, Texas. E-mail: [email protected]
Randall W. Stone
Affiliation:
University of Rochester, Rochester, N.Y. E-mail: [email protected]
Get access

Abstract

How can international organizations persuade governments to adopt policy recommendations that are based on private information when their interests conflict? We develop a game-theoretic model of persuasion that applies regardless of regime type and does not rely on the existence of domestic constituency constraints. In the model, an international organization (IO) and a domestic expert have private information about a crisis, but their preferences diverge from those of the government, which must choose whether to delegate decision making to the expert. Persuasion can take place if the international institution is able to send a credible signal. We find that this can take place only if the preferences of the IO and the domestic expert diverge and the institution holds the more moderate policy position. This result contrasts with conventional wisdom, which holds that the necessary condition for IOs to exert influence is support from a domestic constituency with aligned preferences. Our model suggests that, far from being an obstacle to international cooperation, polarized domestic politics may be a necessary condition for IOs to exert effective influence.

Type
Research Article
Copyright
Copyright © The IO Foundation 2012

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abdelal, Rawi. 2007. Capital Rules: The Construction of Global Finance. Cambridge, Mass.: Harvard University Press.Google Scholar
Aghion, Philippe, and Tirole, Jean. 1997. Formal and Real Authority in Organizations. Journal of Political Economy 105 (1):129.CrossRefGoogle Scholar
Balcerowicz, Leszek. 1992. 800 Dni: Szok Kontrolowany. Warsaw, Poland: Polska Oficyna Wydawn “BGW.”Google Scholar
Barnett, Michael, and Finnemore, Martha. 2004. Rules for the World: International Organizations in Global Politics. Ithaca, N.Y.: Cornell University Press.Google Scholar
Boughton, James M. 2001. Silent Revolution: The International Monetary Fund, 1979–1989. Washington, D.C.: International Monetary Fund.Google Scholar
Calvert, Randall L. 1985. The Value of Biased Information: A Rational Choice Model of Political Advice. Journal of Politics 47 (2):530–55.CrossRefGoogle Scholar
Chapman, Terrence L. 2009. Audience Beliefs and International Organization Legitimacy. International Organization 63 (4):733–64.CrossRefGoogle Scholar
Checkel, Jeffrey T. 1997. Ideas and International Political Change: Soviet/Russian Behavior and the End of the Cold War. New Haven, Conn.: Yale University Press.CrossRefGoogle Scholar
Chwieroth, Jeffrey M. 2007. Neoliberal Economists and Capital Account Liberalization in Emerging Markets. International Organization 61 (2):443–63.CrossRefGoogle Scholar
Chwieroth, Jeffrey M. 2013. “The Silent Revolution”: How the Staff Exercise Informal Governance over IMF Lending. Review of International Organizations (forthcoming).CrossRefGoogle Scholar
Crawford, Vincent P., and Sobel, Joel. 1982. Strategic Information Transmission. Econometrica 50 (6):1431–51.CrossRefGoogle Scholar
Cukierman, Alex, and Tommasi, Mariano. 1998. When Does It Take a Nixon to Go to China? American Economic Review 88 (1):180–97.Google Scholar
Dai, Xinyuan. 2005. Why Comply? The Domestic Constituency Mechanism. International Organization 59 (2):363–98.CrossRefGoogle Scholar
Dai, Xinyuan. 2007. International Institutions and National Policies. Cambridge, UK: Cambridge University Press.CrossRefGoogle Scholar
Dessein, Wouter. 2002. Authority and Communication in Organizations. Review of Economic Studies 69 (4):811–38.CrossRefGoogle Scholar
Drazen, Allan. 2002. Conditionality and Ownership in IMF Lending: A Political Economy Approach. Discussion Paper 3562. London: Centre for Economic Policy Research.CrossRefGoogle Scholar
Drazen, Allan, and Masson, Paul R.. 1994. Credibility of Policies Versus Credibility of Policy-Makers. Quarterly Journal of Economics 109 (3):735–54.CrossRefGoogle Scholar
Dreher, Axel, and Jensen, Nathan M.. 2007. Independent Actor of Agent? An Empirical Analysis of the Impact of U.S. Interests on International Monetary Fund Conditions. Journal of Law and Economics 50 (1):105–24.CrossRefGoogle Scholar
Dreher, Axel, and Vaubel, Roland. 2004. The Causes and Consequences of IMF Conditionality. Emerging Markets Finance and Trade 40 (3):2654.CrossRefGoogle Scholar
Fang, Songying. 2008. The Informational Role of International Institutions and Domestic Politics. American Journal of Political Science 52 (2):304–21.CrossRefGoogle Scholar
Fearon, James D. 1995. Rationalist Explanations for War. International Organization 49 (3):379414.CrossRefGoogle Scholar
Fidler, David P. 2004. SARS, Governance, and the Globalization of Disease. New York: Palgrave Macmillan.CrossRefGoogle Scholar
Gailmard, Sean. 2009. Discretion Rather Than Rules: Choice of Instruments to Control Bureaucratic Policy Making. Political Analysis 17 (1):2544.CrossRefGoogle Scholar
Gilligan, Thomas W., and Krehbiel, Keith. 1987. Collective Decisionmaking and Standing Committees: An Informational Rationale for Restrictive Amendment Procedures. Journal of Law, Economics, and Organization 3 (2):287335.Google Scholar
Goldstein, Judith, and Keohane, Robert O., eds. 1993. Ideas and Foreign Policy: Beliefs, Institutions, and Political Change. Ithaca, N.Y.: Cornell University Press.CrossRefGoogle Scholar
Gould, Erica R. 2006. Money Talks: The International Monetary Fund, Conditionality, and Supplementary Financiers. Stanford, Calif.: Stanford University Press.CrossRefGoogle Scholar
Hawkins, Darren G., Lake, David A., Nielson, Daniel L., and Tierney, Michael J., eds. 2006. Delegation and Agency in International Organizations. New York: Cambridge University Press.CrossRefGoogle Scholar
Helleiner, Eric. 1994. States and the Reemergence of Global Finance: From Bretton Woods to the 1990s. Ithaca, N.Y.: Cornell University Press.Google Scholar
Hills, Carla A., Peterson, Peter G., and Goldstein, Morris. 1999. Safeguarding Prosperity in a Global Financial System: The Future International Financial Architecture. Washington, D.C.: Council on Foreign Relations and Institute for International Economics.Google Scholar
Independent Evaluation Office. 2003. The IMF and Recent Capital Account Crises: Indonesia, Korea, Brazil. Washington, D.C.: International Monetary Fund. Available at ⟨http://www.imf.org/external/np/ieo/2003/cac/pdf/all.pdf⟩. Accessed 29 June 2012.Google Scholar
Independent Evaluation Office. 2004. The IMF and Argentina, 19912001. Washington, D.C.: International Monetary Fund. Available at ⟨http://www.imf.org/external/np/ieo/2004/arg/eng/pdf/report.pdf⟩. Accessed 29 June 2012.Google Scholar
International Monetary Fund. 2005. Review of the 2002 Conditionality Guidelines. Washington D.C.: International Monetary Fund. Available at ⟨http://www.imf.org/external/np/pp/eng/2005/030305.pdf⟩. Accessed 29 June 2012.CrossRefGoogle Scholar
Johns, Leslie. 2007. A Servant of Two Masters: Communication and the Selection of International Bureaucrats. International Organization 61 (2):245–75.CrossRefGoogle Scholar
Keohane, Robert O. 1984. After Hegemony: Cooperation and Discord in the World Political Economy. Princeton, N.J.: Princeton University Press.Google Scholar
Khan, Mohsin S., and Sharma, Sunil. 2001. IMF Conditionality and Country Ownership of Programs. Working Paper 01/142. Washington, D.C.: International Monetary Fund.CrossRefGoogle Scholar
Kydd, Andrew H. 2003. Which Side Are You On? Bias, Credibility, and Mediation. American Journal of Political Science 47 (4):597611.CrossRefGoogle Scholar
Kydd, Andrew H. 2005. Trust and Mistrust in International Relations. Princeton, N.J.: Princeton University Press.CrossRefGoogle Scholar
Milner, Helen V. 1997. Interests, Institutions, and Information: Domestic Politics and International Relations. Princeton, N.J.: Princeton University Press.Google Scholar
Mussa, Michael. 2002. Argentina and the Fund: From Triumph to Tragedy. Washington, D.C.: Institute for International Economics.Google Scholar
Pauly, Louis W. 1997. Who Elected the Bankers? Surveillance and Control in the World Economy. Ithaca, N.Y.: Cornell University Press.Google Scholar
Reinhardt, Eric. 2001. Adjudication Without Enforcement in GATT Disputes. Journal of Conflict Resolution 45 (2):174–95.CrossRefGoogle Scholar
Sartori, Anne E. 2005. Deterrence by Diplomacy. Princeton, N.J.: Princeton University Press.Google Scholar
Simmons, Beth A. 2009. Mobilizing for Human Rights: International Law in Domestic Politics. New York: Cambridge University Press.CrossRefGoogle Scholar
Stone, Randall W. 2002. Lending Credibility: The International Monetary Fund and the Post-Communist Transition. Princeton, N.J.: Princeton University Press.CrossRefGoogle Scholar
Stone, Randall W. 2011. Controlling Institutions: International Organizations and the Global Economy. Cambridge, UK: Cambridge University Press.CrossRefGoogle Scholar
Thomson, Robert, Stokman, Frans N., Achen, Christopher H., and König, Thomas, eds. 2006. The European Union Decides: Testing Theories of European Decision-Making. Cambridge, UK: Cambridge University PressCrossRefGoogle Scholar
Vreeland, James R. 2003. The IMF and Economic Development. New York: Cambridge University Press.CrossRefGoogle Scholar
Woods, Ngaire. 2006. The Globalizers: The IMF, the World Bank, and Their Borrowers. Ithaca, N.Y.: Cornell University Press.Google Scholar