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By Darren G. Hawkins, Visit Amazon's David A. Lake Page, search results, Learn about Author Central, David A. Lake, , Daniel L. Nielson, Michael J. Tierney

Why do states delegate sure projects and tasks to overseas organisations instead of appearing unilaterally or cooperating without delay? in addition, to what volume do states proceed to regulate IOs as soon as authority has been delegated? studying numerous assorted associations together with the realm exchange association, the United international locations and the ecu fee, this ebook explores the various equipment that states hire to make sure their pursuits are being served, and identifies the issues concerned with tracking and dealing with IOs. The members recommend that it's not inherently tougher to layout powerful delegation mechanisms at overseas point than at family point and, drawing on principal-agent conception, support clarify the diversities that exist within the volume to which states are keen to delegate to IOs. They argue that IOs are neither all evil nor all virtuous, yet are greater understood as bureaucracies that may be managed to various levels via their political masters.

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Extra info for Delegation and Agency in International Organizations (Political Economy of Institutions and Decisions)

Example text

By delegating, states reap gains from specialization, as well as capture policy externalities, facilitate collective decision-making, resolve disputes, enhance credibility, and lock-in policy biases. The larger these benefits, the greater the likelihood that states will choose to delegate to an IO. Similarly, the larger the gains, the greater the agency losses states will tolerate before revoking authority from an agent or renegotiating the agency contract. Delegating to an IO, in turn, is likely to enhance international cooperation as well.

Principals benefit from cooperation and may delegate to an IO when there are large policy externalities (see Milner 1997: 44; Lake 1999: 44–52). The greater the externalities, the more likely states are to engage in mutually coordinated action. The gains from cooperation, however, can also be enhanced by delegating to an agent. Policy externalities arise under two conditions, characterized as dilemmas of coordination and collaboration, respectively (Stein 1990; Martin 1992b). In coordination dilemmas, states seek to avoid mutually distasteful outcomes (exemplified by the Chicken game, where the actors desire to avoid the DD outcome) or enhance the certainty of their choosing mutually desired outcomes (exemplified by the “battle of the sexes” game, where the actors prefer to choose either CC or DD, but run some risk of choosing CD or DC “by accident”).

The most powerful states are critical to decisions about delegation and will be most likely to support delegation to international institutions that accurately reflect their global influence. By a similar logic, the greater the preference heterogeneity of states and the greater the divergence between institutional rules and the power of states, the fewer agency losses states will accept before abandoning the current contract or agent. S T R U C T U R E S O F D E L E G AT I O N In any instance of delegation, there is a tradeoff between the gains from delegation and the agency losses that arise from the opportunistic behavior of the agent.

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