Applying Conditionality to Development Assistance

Applying Conditionality to Development Assistance

he announcement on 6 May 2004 by the Millennium Challenge Corporation (MCC) of the 16 countries eligible to receive funding under the Bush Administration’s Millennium Challenge Account (MCA) is a key step in the process of determining the direction of development assistance by applying quantitative international comparators to the governance performance of developing countries. It is the latest...

Environment-shaping: An Alternative Approach to Applying Foreign Development Assistance

Development assistance has a chequered past, in large part because planning for development assistance is historically such a fractured enterprise internally, and so disassociated from development assistance recipients’ assets and needs. The authors of environment-shaping offer an alternative development programme planning methodology that highlights above all else the ever-important relationsh...

IMF Conditionality

This paper presents a principal-agent model of IMF conditional lending, in the aftermath of a “capital-account” liquidity crisis. We show that traditional ex-post conditionality can be e¤ective in safeguarding the Fund’s resources, allowing for the provision of e¢cient emergency lending and reducing ine¢cient ex-ante credit rationing if the capital out‡ow which triggers the crisis is not excess...

Development Assistance Committee

Conditionality and Ownership

I will divide my comments in five parts. First, I will focus on the nature of relationship between an individual country and the IMF. Unless this context is properly analyzed the subsequent discussion on conditionality and ownership will remain incomplete. Second, I will offer a few suggestions about the division of labor between the IMF and the World Bank. The next three sections will be focus...