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Conditionality When Donor And Recipient Preferences Vary

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Author Info
HOWARD WHITE (Institute of Social Studies, The Hague, The Netherlands)
OLIVER MORRISSEY (CREDIT and Department of Economics, University of Nottingham, UK)

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Abstract

An extensive literature evaluates the content of conditionality, but the design of conditionality has received less attention. This paper presents a general framework of conditionality, which allows donor and recipient preferences for policy reform and aid to vary, in which previous contributions are incorporated as specific cases. The general approach allows for conditionality as bargaining between donors and recipients: cases where donors impose conditions on unwilling recipients; cases where recipients are willing but unable to implement all conditions; and situations where recipients and donors are clearly in conflict. Ex ante conditionality is shown to be ineffective in promoting reform in all cases and often counter-productive, either inhibiting the reform efforts of sincere governments or undermining its own credibility by encouraging donors to condone slippage. © 1997 by John Wiley & Sons, Ltd.

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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 9 (1997)
Issue (Month): 4 ()
Pages: 497-505
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Handle: RePEc:wly:jintdv:v:9:y:1997:i:4:p:497-505

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  1. Machiko Nissanke & Benno Ferrarini, 2007. "Assessing the Aid Allocation and Debt Sustainability Framework: Working Towards Incentive Compatible Aid Contracts," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  2. Morrissey, Oliver, 2002. "Making Debt Relief Conditionality Pro-Poor," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  3. Axel Dreher, 2009. "IMF conditionality: theory and evidence," Public Choice, Springer, vol. 141(1), pages 233-267, October. [Downloadable!] (restricted)
    Other versions:
  4. Kalonga Stambuli, 2002. "Political Change, Economic Transition and Catalysis of IMF and World Bank Models - the case of Malawi," Macroeconomics 0211003, EconWPA. [Downloadable!]
  5. McGillivray, Mark & Morrissey, Oliver, 2001. "Fiscal Effects of Aid," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  6. Tsikata, Yvonne M., 2001. "Owning Economic Reforms: A Comparative Study of Ghana and Tanzania," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  7. Mark McGillivray & Oliver Morrissey, 2000. "Aid fungibility in Assessing Aid: red herring or true concern?," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 413-428.
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