IMF conditionality: theory and evidence

By Axel Dreher. 2008

239 citations recorded by the source corpus.

This article analyzes whether and to what extent reliance on conditionality is appropriate to guarantee the revolving character of the resources of the International Monetary Fund (IMF). The paper presents theoretical arguments in favor of conditionality, and those against the use of conditions. It summarizes the track record of program implementation and discusses the evidence of factors determining implementation. Whether proponents or critics of conditionality can be supported by existing data analysis is also investigated, as is the success of conditionality in terms of outcomes. The final section draws policy implications.

Subfields: Development, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/0daefa2442ca0c77c7d0816c442a2adc21c9bc88

How researchers see this paper

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In Development

1. Lindsay R. Dolan
2. L. King
3. Thomas Stubbs
4. A. Kentikelenis
5. Richard Clark

In Economics and Econometrics

1. Lindsay R. Dolan
2. L. King
3. Thomas Stubbs
4. A. Kentikelenis
5. Richard Clark

In Finance

1. Lindsay R. Dolan
2. L. King
3. Thomas Stubbs
4. A. Kentikelenis
5. Richard Clark

Citations in the corpus

• IMF conditionality and development policy space, 1985–2014 (2016, background): “Reviewing the full range of debates around these issues is beyond the scope of this article and available elsewhere (Babb and Carruthers 2008; Dreher 2009; Guiti an 1995; Kapur 2005; Nelson 2014a; 2014b; Nowzad 1981; Spraos 1986; Vreeland 2003; Williamson 1983).”
• Does Conditionality Work? A Test for an Innovative US Aid Scheme (2011, unknown): “Furthermore, Dreher et al. (2010) find that other donors followed the MCC by granting more aid to countries with compacts, pointing to additional indirect MCC effects.”
• Pleasing the Principal: U.S. Influence in World Bank Policymaking (2020, methodology): “While conditionality has been studied extensively at the IMF (Dreher 2009b; Copelovitch 2010; Stone 2011), previous efforts for the World Bank have been necessarily indirect as a result of data limitations (Kilby 2009; Malik and Stone 2018).”