Advanced Search
MyIDEAS: Login

The development and implementation of IMF and World Bank conditionality

Contents:

Author Info

  • Dreher, Axel

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. -- Die mit den Krediten von IWF und Weltbank verknüpften Auflagen haben sich seit der Gründung der beiden internationalen Organisationen stark verändert. Während die Kreditvergabe zunächst nur an wenige Bedingungen geknüpft war, müssen heute eine Vielzahl von zum Teil sehr detaillierten Auflagen erfüllt werden. Diese Auflagen werden zunächst ausführlich beschrieben. Im Anschluss wird aus politisch-ökonomischer Sicht analysiert, welche Faktoren für deren Veränderung sowie Unterschiede in der Auflagenpolitik von Währungsfonds und Weltbank verantwortlich sind. Es wird außerdem versucht, die Zahl der in IWF-Programmen enthaltenen Auflagen ökonometrisch zu erklären. Dabei zeigt sich, dass diese Zahl mit dem gleichzeitigen Engagement der Weltbank in den kreditnehmenden Ländern steigt. Nachdem dargestellt wurde, inwieweit Weltbank- und IWF-Konditionen in der Vergangenheit befolgt wurden und welche Faktoren dafür verantwortlich sein könnten, wird eine weitere ökonometrische Analyse präsentiert. Es zeigt sich, dass die Auflagen der Weltbank vor Wahlen signifikant weniger häufig implementiert werden und dass Zusammenbrüche von IWF-Abkommen in Wahljahren weniger wahrscheinlich sind. Abschließend wird die Reaktion der beiden Institutionen auf die in den letzten Jahren zunehmende Kritik an ihrer Auflagenpolitik dargestellt. Außerdem werden Reformvorschläge unterbreitet.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://econstor.eu/bitstream/10419/19327/1/165.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Hamburg Institute of International Economics (HWWA) in its series HWWA Discussion Papers with number 165.

as in new window
Length:
Date of creation: 2002
Date of revision:
Handle: RePEc:zbw:hwwadp:26352

Contact details of provider:
Postal: Neuer Jungfernstieg 21, D-20347 Hamburg
Phone: 0049-40-42834-0
Fax: 0049-40-42834-451
Email:
Web page: http://www.econstor.eu/handle/10419/20
More information through EDIRC

Related research

Keywords: IMF; World Bank; Conditionality; Compliance; Program Interruption;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please 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.:
as in new window
  1. Michael M. Hutchison, 2001. "A Cure Worse Than the Disease? Currency Crises and the Output Costs of IMF-Supported Stabilization Programs," NBER Working Papers 8305, National Bureau of Economic Research, Inc.
  2. Stiglitz, Joseph E, 1999. "The World Bank at the Millennium," Economic Journal, Royal Economic Society, vol. 109(459), pages F577-97, November.
  3. Edwards, Sebastian, 1989. "The international monetary fund and the developing countries: A critical evaluation," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 31(1), pages 7-68, January.
  4. 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.
  5. Beck, Thorsten & Clarke, George & Groff, Alberto & Keefer, Philip & Walsh, Patrick, 2000. "New tools and new tests in comparative political economy - the database of political institutions," Policy Research Working Paper Series 2283, The World Bank.
  6. Nash, John & DEC, 1993. "Implementation of trade reform in sub-Saharan Africa : how much heat and how much light?," Policy Research Working Paper Series 1218, The World Bank.
  7. 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.
  8. Dreher, Axel & Vaubel, Roland, 2000. "Does the IMF cause moral hazard and political business cycles? : Evidence from panel data," Discussion Papers 598, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
  9. Conway, Patrick, 1994. "IMF lending programs: Participation and impact," Journal of Development Economics, Elsevier, vol. 45(2), pages 365-391, December.
  10. 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.
  11. Axel Dreher, 2004. "The Influence of IMF Programs on the Re-election of Debtor Governments," Economics and Politics, Wiley Blackwell, vol. 16(1), pages 53-76, 03.
  12. repec:imf:imfpdp:9702 is not listed on IDEAS
  13. 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).
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Ruxanda Berlinschi, 2010. "Reputation concerns in aid conditionality," The Review of International Organizations, Springer, vol. 5(4), pages 433-459, December.
  2. Robert Hamwey, 2005. "Expanding national policy space for development: Why the Multilateral Trading System must change," Development and Comp Systems 0511005, EconWPA.
  3. 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.
  4. 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.
  5. repec:hal:journl:halshs-00155767 is not listed on IDEAS
  6. 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.
  7. Josepa Miquel-Florensa, 2007. "Financing Multi-stage projects under moral hazard and limited commitment," Working Papers 2007_4, York University, Department of Economics.
  8. 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.
  9. Bernhard Boockmann & Axel Dreher, 2002. "The Contribution of the IMF and the World Bank to Economic Freedom," International Finance 0207001, EconWPA.
  10. 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).
  11. Josepa Miquel-Florensa, 2007. "Aid Effectiveness: A comparison of Tied and Untied Aid," Working Papers 2007_3, York University, Department of Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:zbw:hwwadp:26352. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.