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Conditionality and country ownership of adjustment program (English)

This article use finance and agency theory to establish two key propositions about International Monetary Fund (IMF) conditionality and country ownership of IMF-supported adjustment programs. First, the authors suggest that the conditionality attached to this program is justified. Second, the article hypothesizes that country ownership of these program is crucial for this success. Because IMF conditionality and country ownership are both necessary, the challenge is designing conditionality that maximizes ownership while providing adequate safeguards for IMF lending. The article analyzes several recent aimed at enhancing country ownership of policies contained in IMF-supported programs. This is include structural conditionality, introducing flexibility in the timing of structural policy measures (floating tranche conditionality), and applying conditionality to outcomes rather policies (outcomes-based conditionality).

Details

  • Author

    Khan,Safa Mohsin, Sharma,Sunil

  • Document Date

    2003/01/01

  • Document Type

    Journal Article

  • Report Number

    76449

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    World,

  • Region

    The World Region,

  • Disclosure Date

    2013/04/08

  • Disclosure Status

    Disclosed

  • Doc Name

    Conditionality and country ownership of adjustment program

  • Keywords

    conditionality;access to international capital markets;views of civil society;privatization of public enterprise;allocation of control right;heavily indebted poor country;Borrowing Countries;balance of payment;current account balance;transfer of control;capital account crisis;event of default;Foreign Exchange Reserve;civil society group;taxes and labour;likelihood of default;private financial institution;private capital market;probability of repayment;assurance to investor;independent central bank;case of default;tax collection system;foreign exchange restriction;good policy environment;lenders with assurance;inflation targeting framework;disbursement of fund;segments of society;choice of policies;ex post conditionality;Civil Service Reform;implementation of policies;availability of fund;challenge for governments;lack of ownership;interest rate policy;production and export;prompt corrective action;implementation of reform;floating tranche;moral hazard;research observer;adjustment program;

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Citation

Khan,Safa Mohsin Sharma,Sunil

Conditionality and country ownership of adjustment program (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/392391468336327204/Conditionality-and-country-ownership-of-adjustment-program