The Development and Implementation of IMF and World Bank Conditionality

66 Pages Posted: 11 Feb 2003

Date Written: 2002

Abstract

The paper presents a detailed description of IMF and World Bank conditionality and tries to explain changes in this conditionality over time as well as differences between the two institutions. Using panel data it is shown that the number of Fund conditions seem to be influenced by contemporaneous World Bank activity. Moreover, the paper tries to explain compliance with World Bank conditionality as well as interruptions of IMF programs in the recipient countries. Compliance with World Bank conditionality is lower in election years and pre-election years. Breakdowns of IMF programs are less likely in election years. However, no other political factors seem to influence interruptions and compliance systematically. The paper describes the institutions' reaction to recent criticism and concludes with implications for reform.

Keywords: IMF, World Bank, Conditionality, Compliance, Program Interruption

JEL Classification: D72, F33, F34

Suggested Citation

Dreher, Axel, The Development and Implementation of IMF and World Bank Conditionality (2002). Available at SSRN: https://ssrn.com/abstract=333960 or http://dx.doi.org/10.2139/ssrn.333960

Axel Dreher (Contact Author)

Heidelberg University ( email )

Grabengasse 1
Heidelberg, 69117
Germany

HOME PAGE: http://www.axel-dreher.de

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