Should Policy-Based Lending Still Involve Conditionality?
AbstractTraditional conditionality in policy-based lending is often criticized as being ineffective, intrusive, and corrosive. Disillusionment has led to proposals to replace ex ante conditionality with ex post conditionality and to focus on ownership, selectivity, and partnerships. This article reviews experiences with conditionality in the World Bank's policy-based lending and explores the benefits and drawbacks of various approaches. It argues that conditionality should play a central role in policy-based lending--but cannot substitute for country ownership and good policies. Moreover, an exclusive focus on conditionality based on ex ante commitments or ex post results may not be practical or useful for the Bank's policy-based lending. Thus a key recommendation is to use conditionality selectively, tailored to country circumstances. Indeed, an eclectic mix of traditional and new approaches is already being used--with programmatic policy-based lending offering a particularly promising way to reconcile the debate between the traditional ex ante approach and the aspirations of a results-based approach to conditionality. Copyright 2003, Oxford University Press.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by World Bank Group in its journal The World Bank Research Observer.
Volume (Year): 18 (2003)
Issue (Month): 2 ()
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Phone: (202) 477-1234
Fax: 01865 267 985
Web page: http://wbro.oxfordjournals.org/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jac C. Heckelman & Stephen Knack, 2008.
"Foreign Aid and Market-Liberalizing Reform,"
London School of Economics and Political Science, vol. 75(299), pages 524-548, 08.
- Temple, Jonathan R.W., 2010. "Aid and Conditionality," Handbook of Development Economics, Elsevier.
- Martin Knoll, 2008. "Budget Support: A Reformed Approach Or Old Wine In New Skins?," UNCTAD Discussion Papers 190, United Nations Conference on Trade and Development.
- Smets, Lodewijk & Knack, Stephen, 2014. "World Bank lending and the quality of economic policy," Policy Research Working Paper Series 6924, The World Bank.
- Stefan Koeberle & Harold Bedoya & Peter Silarszky & Gero Verheyen, 2005. "Conditionality Revisited : Concepts, Experiences, and Lessons," World Bank Publications, The World Bank, number 7346, October.
- Operations Evaluation Department, 2004. "2003 Annual Review of Development Effectiveness : The Effectiveness of Bank Support for Policy Reform," World Bank Publications, The World Bank, number 14925, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.