Conditionality

E. Conditionality of IMF lending

III. THE AVAILABILITY AND CONDITIONALITY OF OFFICIAL

This quot conditionality quot is a long way from the conditionality that Douglas Hurd was espousing in 1990 and 1991

But that destination comes with a heavy conditionality.

All variants of Eurobonds come with supposedly strong conditionality.

Thus, we find ourselves faced with a complex conditionality.

Some progress in streamlining conditionality of aid flows is emerging.

Development assistance should not be tied to conditionality and selectivity.

197. Other delegations pointed out the tension surfacing between conditionality and national sovereignty, stressing that the principle at stake was one of accountability rather than conditionality.

Furthermore, different conditionality approaches make these institutions attractive to borrowing countries.

(The new, gentler IMF has sworn off such harsh conditionality for Greece.)

As important as IMF lending facilities is the conditionality attached to them.

Until the 1980s, conditionality mainly focused on monetary, fiscal and exchange rate policies.

This can at least partly explain why conditionality streamlining has been so slow.

Nevertheless, such conditionality would have been acceptable in the light of international practice.

That is why the United Nations Development Programme (UNDP) is opposed to conditionality.

The most important task will be to create a new type of political conditionality.

Admittedly, this would require departing from the Fund s traditional lending in exchange for conditionality.

Further debt relief should not involve conditionality beyond that required by existing IDA arrangements.

Another concern is that reducing the number of structural conditions in Fund supported programmes may lead to an expansion of conditionality by the World Bank, with the aggregate conditionality burden remaining unchanged or even increasing.

To allay anxiety about government profligacy, the ECB built conditionality into its bond purchase program.

The challenge is to find the right mix of pre approval, limited conditionality, and speed.

But, by insisting on such conditionality, she would trigger a huge political crisis in Europe.

Many participants expressed concern about the current distribution, volume, trends, effectiveness and conditionality of aid.

The basic objective of the 2002 guidelines is to streamline conditionality and enhance programme ownership.

3 IMF approves new conditionality guidelines , IMF Survey, vol. 32, Supplement 2003, 15 September 2003.

One of the most appropriate mechanisms could be to increase significantly access under the PRGF arrangements (called PRGF augmentation in recent IMF analysis), to diminish conditionality and to make conditionality more supportive of growth and poverty reduction.

Neither should this paragraph be seen as a conditionality in order to force any budget decision.

A number of delegations stressed that there should be no human rights conditionality in development cooperation.

A number of delegations stressed that there should be no human rights conditionality in development cooperation.

Even in Europe, with its long history of cooperation, surveillance and conditionality are outsourced to the IMF.

Both initiatives were coordinated with the International Monetary Fund, ensuring strict conditionality on the external finance obtained.

But aid conditionality and treaty commitments have significantly constrained policymaking in most developing countries, especially the poorest.

When Bank research showed that conditionality did not work, the Bank under Wolfensohn moved away from it.

Indeed, several participants viewed aid as still too donor driven and conditional streamlining conditionality was therefore necessary.

In this regard, the new guidelines stress a test of criticality for any variable selected for conditionality.

Environmental degradation will continue if we keep on applying such ambiguous criteria as quot environmental conditionality quot .

Some members stressed that, in the execution of projects, no quot environment conditionality quot should be introduced.

Thirdly, conditionality has reduced the policy latitude of national Governments, thereby increasing the risks of domestic instability.

In doing so, however, it must scrupulously respect the principle of consent, and avoid intrusiveness and conditionality.

The IMF took steps in this direction in March, particularly by creating the Flexible Credit Line for crisis prevention purposes, as well as expanding other credit lines and overhauling conditionality (relying more on ex ante conditionality and eliminating structural performance criteria).

The IMF started to do this when it created credit facilities without the Fund s usual (and humiliating) conditionality.

Without strict conditionality, she would risk shifting the domestic consensus in favor of Germany s emerging Euro skeptic mood.

There were also concerns that excessive conditionality might undermine the national ownership of programmes, thereby impeding their implementation.