What is conditionality, Business Economics

Assignment Help:

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.


Related Discussions:- What is conditionality

Calculate the standard error, The Wallpaper Shop, Inc., is a rapidly growin...

The Wallpaper Shop, Inc., is a rapidly growing chain of wallpaper shops that caters to the do-it-yourself home remodeling market. During the past year, 15 stores were operated in s

What are the disadvantages of informal economy, What are the disadvantages ...

What are the disadvantages of informal economy? Disadvantages of the informal sector are as illustrated below: • don’t pay direct taxes; • Can produce important pollutio

Capital cost estimation, You should use a variety of other methods of capit...

You should use a variety of other methods of capital cost estimation to check and refine your estimate to give a definitive capital cost for the plant. You will need to compare the

Are international capital flows a problem, Are international capital flows ...

Are international capital flows a problem? Problem: Capital flows can have an adverse outcome onto: a. Balance of payments (BoP): Shortly term capital inflows can be like:

Economics, Why does a production possibilities frontier with increasing opp...

Why does a production possibilities frontier with increasing opportunity costs have a bowed-out shape?

How does the exchange rate influence the benefits of trade, How does the ex...

How does the exchange rate influence the benefits of trade? Mutually beneficial international trade arises specified the exchange ratios lie among the internal opportunity cost

Differentiate essential and adequate condition for growth, What is the diff...

What is the difference between an essential and adequate condition for growth? Essential and adequate conditions are helpful analytical and evaluative elements. As like exampl

Explain the relationship between scarcity, QUESTION (a) Explain the rel...

QUESTION (a) Explain the relationship between scarcity, choice and opportunity cost. (b) Distinguish between centrally planned, laissez-faire and mixed economic systems rega

Test review question, greg and todd form a partnership and start a business...

greg and todd form a partnership and start a business in which each has a 50 percent share of the profit. after a year, the firm goes bankrupt and has debts of $20,000. greg has no

Microeconomics, Ask ques Choose a topic from Micro economics that matters t...

Ask ques Choose a topic from Micro economics that matters to you and find a recent news article covering that topic. For example following can be some of the useful topics: - Austr

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd