New IMF Conditionality Guidelines (CRS Report for Congress)
| Release Date |
Nov. 19, 2002 |
| Report Number |
RS21357 |
| Report Type |
Report |
| Authors |
Martin A. Weiss, Foreign Affairs, Defense, and Trade Division |
| Source Agency |
Congressional Research Service |
Summary:
The International Monetary Fund (IMF) recently revised the guidelines for the design of conditionality in its loans. Conditionality requires a borrower country to adhere to various macroeconomic and other policy conditions when it borrows funds from the IMF. It is an inherent feature of all IMF lending. Four guiding principles are at the core of the revised IMF guidelines: national ownership of the reform program, parsimony and clarity in the application of program-related conditions, tailoring of programs to the members circumstances, and effective coordination between the IMF and other multilateral institutions. This report provides background on the issues, summarizes the principles underlying the new guidelines, discusses the criticisms they respond to, and assesses their likely effectiveness.
