IMF Lending in Low- and Middle-Income Countries in the Wake of the Global Crisis
AbstractIn the wake of the global crisis the International Monetary Fund (IMF) increased its exposure to low- and middle-income countries and boosted the overhaul of its lending approach to enhance its role in preventing crises. This paper tests whether IMF lending has targeted countries most affected by the crisis in order to dampen contagion effects and assesses to what extent the Fund\'s strategy has been driven by political-economy interests of its major shareholders. Results show that political similarity between borrowers and G7 governments has influenced the participation in IMF pro-grams, especially where the crisis was severe. In addition, the extent of the crisis and the economic interest of Western countries have affected the size of the loan.
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Bibliographic InfoPaper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 305.
Date of creation: 30 Nov 2010
Date of revision:
Global crisis; IMF programs; Washington Consensus; growth;
Find related papers by JEL classification:
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
- F34 - International Economics - - International Finance - - - International Lending and Debt Problems
- F35 - International Economics - - International Finance - - - Foreign Aid
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-12-11 (All new papers)
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