Master or Servant? Common Agency and the Political Economy of IMF Lending

G5'' countries also exert substantial influence within the EB, and the degree to which these countries' interests coincide or conflict significantly influences IMF lending decisions. Second, the common agency framework predicts that IMF lending will vary based on the relative influence of G5 governments and the Fund staff in a particular case. When a borrower country is of substantial financial and or geopolitical importance to the Fund's principals, G5 preference heterogeneity is a significant determinant of variation in IMF lending. However, when G5 interests are less intense, the staff's influence and autonomy are greater and Fund loans will more closely reflect its technocratic and or 2 The IMF operates much like a credit union: each member-state contributes to the Fund's quota resources and is eligible to borrow in proportion to these contributions.