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IMF Lending in Low- and Middle-Income Countries in the Wake of the Global Crisis

Author

Listed:
  • Andrea F. Presbitero

    () (Università Politecnica delle Marche)

  • Alberto Zazzaro

    () (Università Politecnica delle Marche)

Abstract

In 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.

Suggested Citation

  • Andrea F. Presbitero & Alberto Zazzaro, 2010. "IMF Lending in Low- and Middle-Income Countries in the Wake of the Global Crisis," Development Working Papers 305, Centro Studi Luca d'Agliano, University of Milano.
  • Handle: RePEc:csl:devewp:305
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    File URL: http://www.dagliano.unimi.it/media/WP2010_305.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Global crisis; IMF programs; Washington Consensus; growth;

    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, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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