The results indicate that such conditionality had a positive impact on tax revenue, with strongest improvement felt on taxes on goods and services, including the vat. In this issue of the global housing watch newsletter, rust talks about how cahf is tracking the housing market in africa, the big mac index for housing, why housing finance remains elusive, why housing matters to all stakeholders. Most programs met their objectives based on comparison of outturns to initial projections and acceptable levels of key macro variables. Ownership and conditionality in imf supported programs imf lending is conditional on a countrys commitment to carry out an agreed program of economic policies.
Structural conditionality under sbasupported program. Adoption of imf supported policies is also meant to lay the foundation for a sustainable economic growth path over the longer term. If anything, the difference between program and nonprogram countries in their mac. In fact, radelet and sachs 1998 claim that structural conditionality has often been prescribed in the wrong cases and in wrong dosages. The politics of conditional lending in developing countries there is scarcely any enduringly successful experience of an international body which has fulfilled the hopes of its progenitors. This book aims, therefore, to critically assess the theory and evidence of the effects of imf structural adjustment programs imf saps in tes. The 201516 budget is consistent with the objectives and targets of the programme and maintains a central government primary surplus of 7. At the same time, there has been wide variation in the extent of imf involvement in social protection across countries and timewith. All comments received by june 30, 2001, will be conveyed to the imfs executive board as background information for a board discussion in june and will also be taken into. Buy structural conditionality in imf supported programs. The imfs role in greece in the context of the 2010 standby. Conditionality and design of imfsupported programmes european.
It found that the use of specific structural conditions was no better explained in the recent programs than in the earlier ones. Structural conditionality in imfsupported programs. International monetary fund programs and health spending. House report on debt relief for poverty reduction act of 1999. Revenue conditionality matters more for lowincome countries. Comments on ieo evaluation of structural conditionality in imf supported programs seminar finansdepartementet, january 10, 2008 benedicte bull, senior researcher, centre for development and the environment sum, university of oslo first of all i would like to congratulate the imf with having such a thorough.
Ieo releases an update to its 2007 evaluation of structural conditionality in imf supported programs poverty and inequality in latin america fiscal consolidation and income inequality in latin america and the caribbean. This paper presents factual information on conditionality drawn from the mona database 9 and a survey of a sample of mission teams, as well as a number of case studies. The roc examines the performance of fundsupported programs ongoing. These conditionalities are often grouped under the label structural adjustment as they were prominent in the structural adjustment programs following the debt crisis of the 1980s. Aug 09, 2017 the impact of revenue conditionality in imf supported programs works over time. Ownership and conditionality in imfsupported programs imf lending is conditional on a countrys commitment to carry out an agreed program of economic policies. Structural conditionality in imf supported programs. Effectiveness of imfsupported stabilization programs in developing. All conditionality under an imfsupported program must be macrocriticalthat is, either critical to the achievement of macroeconomic program goals or necessary for the implementation of specific provisions under the imfs articles of agreement.
Design of fundsupported programs roc dated back to 2011 and the funds. Comments on ieo evaluation of structural conditionality in imf. Economic fluctuations and growth program, international finance and macroeconomics program, public economics program. Feb 01, 2017 read the impact of imf conditionality on government health expenditure. The impact of imf conditionality on government health.
Structural adjustment programmes saps consist of loans provided by the international monetary fund imf and the world bank wb to countries that experienced. Trends in structural conditionality in fundsupported programs 198799. The determinants of effectiveness 11 4 the impact of the streamlining initiative 15 a. We ask how domestic political considerations shape the distribution of cuts made by governments in imf programs. Does conditionality in imfsupported programs promote revenue. It summarizes the track record of program implementation and discusses the evidence of factors. Most of these conditions had little structural depth and only about half of them were met on time. How effective is structural conditionality in fostering structural reforms 8 d. Institutional quality, macroeconomic stabilization and.
February 2017 kecia rust is the executive director and founder of the centre for affordable housing finance in africa. The second paper, structural conditionality in fundsupported programs, accounts for the expansion of structural conditionality in recent years. Independent evaluation office reports book independent evaluation office reports thanks for sharing. The characteristics of structural conditions in imfsupported programs 4 b. Conditionality was generally appropriately streamlined, evenhanded, and tailored to country needs.
Research work by the imf s staff on the effectiveness of the country programs the organization supports, which has long been carried out, has intensified in recent years. Structural conditionality in fundsupported programs, february 16. If anything, the difference between program and nonprogram countries in their mac roeconomic. The report described that structural conditionality terms where still used extensively in imf lending programs with an average of 17 conditions per program year, but were. In the mid1980s, structural conditionality gained prominence. This report is by the banking and financial services. As another issue in the conditionality debate, there is the question of which countries. Much debate in types of conditionality centers around exante versus expost conditionality. Our central finding is that imf programs shrink the role played by domestic politics. First, imf supported reforms improve economic growth or raise tax revenues, thereby expanding fiscal space to allow governments to invest in public health clements et al.
The effects of programs, loans, and compliance with conditionality, international finance 0404004, university library of munich, germany, revised aug 2005. This article uses finance and agency theory to establish two key propositions about international monetary fund imf conditionality and country ownership of imfsupported adjustment programs. It was aimed both at strengthening the sustainability of macroeconomic adjustment and at fostering growth. Improving the design of structural conditionality in imfsupported programs remains.
Structural conditionality in imfsupported programs kindle. Distribution of structural conditionality by economic sector. This paper assesses the implementation of imf supported programs using measures of program interruptions, compliance with conditionality, and the share of committed funds disbursed. Examples include reduce government spending, raise taxes, restrict money growth.
What determines the implementation of imfsupported programs. The imf international monetary fund should cease lending to countries. The importance of conditionality in imf programs continuously increased over time. Building fiscal institutions in fragile states imf blog. A guide to international monetary economics docshare. The new structural and enhanced structural adjustment loans, carrying. Imf conditionality can be viewed as a complex covenant written into the loan agreement. Imf conditionality and country ownership of programs. Imf and economic reform in developing countries sciencedirect. The econometric model allows an evaluation of the importance for program implementation of political conditions in borrowing countries, imf effort, conditionality. Their efforts have also focused on identifying the. The unassuming economist housing view may 10, 2019. The scope of imf conditionality volume 62 issue 4 randall w.
Ieo releases report on structural conditionality in imfsupported programs follow up implementation plan in response to boardendorsed recommendations arising from the ieo evaluation of structural conditionality in imfsupported programs. A failure and a success two of the countries that were worst affected by the global crisis that hit the west in 2008 have become symbols for the success and the failure of imf programmes. Conditionality in its broad sense covers both the design of imfsupported programs that is, the macroeconomic and structural policiesand the specific tools used to monitor progress toward the goals outlined by the country in cooperation with the imf. Imf analysts have sought to open up the black box by more closely examining program design and implementation, as well as how these influence programs effectiveness. Welfare implications and the catalytic effect, staff working papers 0722, bank of canada.
Ieo releases an update to its 2007 evaluation of structural conditionality in imfsupported programs poverty and inequality in latin america fiscal consolidation and. The scope of imf conditionality international organization. The analysis focuses on the appropriateness, effectiveness, and impact of the conditionality attached to imf saps in these economies. Positive results were obtained for a substantial majority of programs. The imf boardroom, the enhanced structural adjustment facility, and the intersection of material power and norm stabilisation in global politics. Buy structural conditionality in imfsupported programs. Imf performance in the runup to the financial and economic crisis. Stone skip to main content we use cookies to distinguish you from other users and to. Standard ex post conditionality in imfsupported programmes refers to the.
The causes and consequences of imf conditionality jstor. Independent evaluation office reports book independent evaluation office reports. Structural conditionality in fund supported programs. The imf joined the european commission ec and the european. 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. Structural conditionality in imfsupported programs ebook por.
The current study is motivated by the overall lackluster performance of imf programmes in recipient countries in terms of economic growth consequences, and tries to explore the relevance of institutional determinants that have a positively significant role in improving institutional quality in imf programme countries, in the first place in enhancing real economic growth in imf. While the conditionality of the imf has sometimes been seen as misguided or. Imf supported adjustment programs especially those backed by the esaf, the facility. Economic and financial crises in emerging market economies. Stone skip to main content we use cookies to distinguish you from other users and to provide you with a better experience on our websites. Conditionality covers the design of imfsupported programs that is, macroeconomic and structural policiesand the specific tools used to monitor progress toward goals outlined by the country in cooperation with the imf. First, imfsupported fiscal programs have often been too conservative or riskaverse. This paper studies whether revenue conditionality in fund programs had any impact on the revenue performance of 126 low and middleincome countries during 199320. Structural conditionality in imfsupported programs ebook by. A central component of international monetary fund imf programs is reducing government budget deficits. By petya koeva brooks, martin muhleisen, and chad steinberg. Designing effective programs conditionality in its broad sense covers both the design of imfsupported programsthat is, the macroeconomic and structural policiesand the specific tools used to monitor progress toward the goals outlined by the country in cooperation with the imf.
The paper presents theoretical arguments in favor of conditionality, and those against the use of conditions. The imf proposes three channels through which its programmes are linked to strengthening of health systems. The evaluation finds that during the period 19952004 there was extensive use of structural conditionality in imfsupported programs, with an average of 17 conditions per program year. As it has for many years, international monetary fund conditionality is. The policy prescriptions contained in imf supported programs essentially serve to provide the safeguards that the coun try will be able to rectify its macroeconomic and structural.