What is conditionality, Business Economics

What is Conditionality?

Conditionality is the needs imposed onto countries as pre-conditions for loans.

Into crisis situations member countries seek assist from the IMF for example Argentina in 2002 year. The IMF gives a support conditional onto economic reforms as laid out within an SAP as an example the LDC should:

• Lower government spending balance and run balanced budget. Resultant cuts into education and health decrease welfare and hence the costs of adjustment frequently fall disproportionately onto the poorest and most vulnerable into society

• Privatisation of state owned monopolies for example a 2002 IMF loan is conditional onto privatisation of sale of Ghana's water system

• End government forced wage, interest-rate and price controls,

• End price control as well as subsidies.

• Increase real interest rates to market levels and

• Lower tariffs, end quotas and eliminate exchange controls.

Posted Date: 8/30/2013 6:54:01 AM | Location : United States







Related Discussions:- What is conditionality, Assignment Help, Ask Question on What is conditionality, Get Answer, Expert's Help, What is conditionality Discussions

Write discussion on What is conditionality
Your posts are moderated
Related Questions
Flexible exchange rate system: A country is linked to other countries through two broad channels:  trade flows andfinancial flows. Trade flows pertain to movement of goods and

Consider another company, Lateco, which has just received its fifth round of investment.  These rounds have been: Series A: CP ($5M FV) or converts to 5M shares of common. Se

Expansionary fiscal policy happens when the government cuts spending. How?

QUESTION No point is better accepted than the fact that the monopoly price is higher and the output smaller than what is socially ideal. The public is the victim. (a) Distin

Examine the factors that determine the price of computers in a free market. In recent years, the price of personal computers has continued to fall even in the face of increasing de

What is aid? Aid is the administered transfer of resources by a donor country or international agency or non-government organisation to less developed countries to encourage e

the basic assumption of the static model

Bonjour, Veuillez SVP me donner un modèle d''un projet. Merci

Explain the relationship between types of risk action and where each might be utilized. Risk actions are of mainly two types: avoidance actions and mitigation actions: Avoi

Tri-City Industries is considering two possible capital projects. Project A requires an initial investment of $240,000 and provides cash flows before tax of $120,000 in year one, $