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The IMF's role in structural adjustment

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  • Paul Collier
  • Jan Willem Gunning

Abstract

In the 1980s conditional lending for structural adjustment in developing countries moved the IMF beyond its role of macroeconomic crisis management. Fund-supported adjustment programmes have often been flawed by a lack of distributional analysis and by poor sequencing of reforms, notably premature financial liberalisation. As a result they have caused avoidable hardship. In addition, the attempt to taper out aid as part of the reform programme leads to avoidable reductions in post-stabilisation growth. An important role for the Fund in post-stabilisation environments is to provide credible signals to private investors.

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Paper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 1999-18.

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Date of creation: 1999
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Handle: RePEc:csa:wpaper:1999-18

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  1. Simon Appleton & Tom Emwanu & Johnson Kagugube & James Muwonge, 1999. "Changes in poverty in Uganda, 1992-1997," CSAE Working Paper Series 1999-22, Centre for the Study of African Economies, University of Oxford.
  2. Paul Collier & Jan Willem Gunning, 1998. "Explaining African economic performance," Economics Series Working Papers WPS/1997-02.2, University of Oxford, Department of Economics.
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