Conditionality
In
International financial institutions
Conditionality is typically employed by the
Ex-ante vs. ex-post
Much debate in types of conditionality centers around ex-ante versus ex-post conditionality. In ex-post conditionality, the country receiving aid agrees to conditions set by the donor or lender that they will carry out after they receive the aid. Later follow-ups determine whether they might receive more aid. Ex-ante conditionality requires a country to meet certain conditions and prove it can maintain them before it will receive any aid.[1]
Traditionally, the
'Tied' aid
Other types of conditionality that often occur are aid which is tied to be used in a specific way. For example, many countries tie aid to the purchasing of domestic products, although this practice has drastically decreased over the past 15 years. The United Nations Human Development Report in 2005 estimated that only about 8 per cent of bilateral aid is 'tied', down from 27 per cent in 1990. This however varies from country to country with the United Kingdom, Ireland and Norway giving 100 per cent of their aid untied, and Canada, Austria and Spain giving less than 60 per cent. [1]
European Union
The European Union also employs conditionality with respect to enlargement, with membership conditional on candidate countries meeting the Copenhagen criteria and adopting the acquis communautaire.
See also
- Consideration
- Development aid
- Heavily Indebted Poor Countries
- Structural adjustment
References
Stefan Koeberle; Harold Bedoya; Peter Silarsky; Gero Verheyen, eds. (2005). Conditionality Revisited: Concepts, Experiences, and Lessons (PDF). The World Bank.
- ^ Susan M. Collins, University of Michigan Ford School of Public Policy. Public Policy 201 Lecture on Global Poverty
- ^ Dreher, A. (2009), "IMF Conditionality: Theory and Evidence", Public Choice, 141, 233-267
External links
- World Bank conditionality [2]
- Conditionality in IMF-supported programs - overview [3]
- David Hall and Robin de la Motte, Dogmatic Development: Privatisation and conditionalities in six countries, War on Want [4]
- "The Future of Aid Conditionality", Globalization Institute [5]
- Big Picture TV Archived 2016-03-18 at the Wayback Machine Free video clip of Martin Khor (Director, Third World Network) speaking about structural adjustment
- ActionAid, April 2004, "Money talks: How aid conditions continue to drive utility privatisation in poor countries"
- Eurodad, November 2007, [6] Untying the knots - How the World Bank is failing to deliver real change on conditionality
- European Network on Debt and Development reports, news and links on conditionality. [7]