The Development and Implementation of IMF and World Bank Conditionality
Abstract
The paper presents a detailed description of IMF and World Bank conditionality and tries to explain changes in this conditionality over time as well as differences between the two institutions. Using panel data it is shown that the number of Fund conditions seem to be influenced by contemporaneous World Bank activity. Moreover, the paper tries to explain compliance with World Bank conditionality as well as interruptions of IMF programs in the recipient countries. Compliance with World Bank conditionality is lower in election years and pre- election years. Breakdowns of IMF programs are less likely in election years. However, no other political factors seem to influence interruptions and compliance systematically. The paper describes the institutions’ reaction to recent criticism and concludes with implications for reform.Download Info
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Paper provided by EconWPA in its series International Finance with number 0207003.Length:
Date of creation: 25 Jul 2002
Date of revision:
Handle: RePEc:wpa:wuwpif:0207003
Note: Type of Document - ; prepared on PC; figures: included
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Web page: http://128.118.178.162
Related research
Keywords: IMF; World Bank; Conditionality; Compliance; Program Interruption;Other versions of this item:
- Dreher, Axel, 2002. "The development and implementation of IMF and World Bank conditionality," HWWA Discussion Papers 165, Hamburg Institute of International Economics (HWWA).
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
- F34 - International Economics - - International Finance - - - International Lending and Debt Problems
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-08-08 (All new papers)
- NEP-FIN-2002-08-08 (Finance)
- NEP-LAM-2002-07-31 (Central & South America)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Thiele, Rainer & Wiebelt, Manfred, 2000. "Sind die Anpassungsprogramme von IWF und Weltbank gescheitert? Eine Bilanz der Erfahrungen von zwei Jahrzehnten," Kiel Discussion Papers 357, Kiel Institute for the World Economy (IfW).
- International Monetary Fund, 1998. "Do IMF-Supported Programs Work? A Survey of the Cross-Country Empirical Evidence," IMF Working Papers 98/169, International Monetary Fund.
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"Does the IMF cause moral hazard and political business cycles? Evidence from panel data,"
International Finance
0207002, EconWPA.
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- Haggard, Stephan, 1985. "The politics of adjustment: lessons from the IMF's Extended Fund Facility," International Organization, Cambridge University Press, vol. 39(03), pages 505-534, June.
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"The Contribution of the IMF and the World Bank to Economic Freedom,"
ZEW Discussion Papers
02-18, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Boockmann, Bernhard & Dreher, Axel, 2003. "The contribution of the IMF and the World Bank to economic freedom," European Journal of Political Economy, Elsevier, vol. 19(3), pages 633-649, September.
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Cohen, Joseph N, 2010. "Neoliberalism’s relationship with economic growth in the developing world: Was it the power of the market or the resolution of financial crisis?," MPRA Paper 24399, University Library of Munich, Germany.
- Boockmann, Bernhard & Dreher, Axel, 2002.
"The Contribution of the IMF and the World Bank to Economic Freedom,"
ZEW Discussion Papers
02-18, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Boockmann, Bernhard & Dreher, Axel, 2003. "The contribution of the IMF and the World Bank to economic freedom," European Journal of Political Economy, Elsevier, vol. 19(3), pages 633-649, September.
- Bernhard Boockmann & Axel Dreher, 2002. "The Contribution of the IMF and the World Bank to Economic Freedom," International Finance 0207001, EconWPA.
- Josepa Miquel-Florensa, 2007. "Financing Multi-stage projects under moral hazard and limited commitment," Working Papers 2007_4, York University, Department of Economics.
- Hefeker, Carsten, 2003. "Handels- und Finanzarchitektur im Umbruch: Globale Integration und die institutionelle Arbeitsteilung von IWF, Weltbank und WTO," HWWA Discussion Papers 225, Hamburg Institute of International Economics (HWWA).
- Axel Dreher & Nathan Jensen, 2005.
"Independent Actor or Agent? An Empirical Analysis of the impact of US interests on IMF Conditions,"
KOF Working papers
05-118, KOF Swiss Economic Institute, ETH Zurich.
- Axel Dreher & Nathan Jensen, 2003. "Independent Actor or Agent? An Empirical Analysis of the impact of US interests on IMF Conditions," International Finance 0310004, EconWPA, revised 08 Jan 2004.
- Michael Hutchison & Ilan Noy, 2003.
"Macroeconomic effects of IMF-sponsored programs in Latin America: output costs, program recidivism and the vicious cycle of failed stabilizations,"
Pacific Basin Working Paper Series
03-02, Federal Reserve Bank of San Francisco.
- Hutchison, Michael M. & Noy, Ilan, 2003. "Macroeconomic effects of IMF-sponsored programs in Latin America: output costs, program recidivism and the vicious cycle of failed stabilizations," Journal of International Money and Finance, Elsevier, vol. 22(7), pages 991-1014, December.
- Cohen, Joseph N, 2010. "Neoliberalism’s relationship with economic growth in the developing world: Was it the power of the market or the resolution of financial crisis?," MPRA Paper 24527, University Library of Munich, Germany.
- Robert Hamwey, 2005. "Expanding national policy space for development: Why the Multilateral Trading System must change," Development and Comp Systems 0511005, EconWPA.
- Ruxanda Berlinschi, 2010. "Reputation concerns in aid conditionality," The Review of International Organizations, Springer, vol. 5(4), pages 433-459, December.
- Josepa Miquel-Florensa, 2007. "Aid Effectiveness: A comparison of Tied and Untied Aid," Working Papers 2007_3, York University, Department of Economics.
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