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Principle of Conditionality as Applied by The IMF and The World Bank - Research Paper Example

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This research paper describes the principle of conditionality as applied by the IMF and the World Bank. It analyses the term conditionality, its meaning, and it in different contexts…
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Principle of Conditionality as Applied by The IMF and The World Bank
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Download file to see previous pages Both these organizations use the principle of conditionality in order to define the terms of their participation in specific funding schemes – referring to the funding of states as members of the international community. It is proved that IMF and the World Bank tend to respond to the needs of states for funding – in order for specific projects to be completed. However, it has been made clear that the terms and the conditions of this cooperation may differentiate each time in accordance with a series of factors: local culture and ethics can influence the response of the public to the measures required; therefore, the targets set by a particular funding project may not be achieved; on the other hand, the performance of such projects is difficult to be predicted – being related to many different political, social and economic factors and events. The principle of conditionality helps the IMF and the World Bank to secure their claim against the borrower; however, the above principle cannot operate towards the opposite direction: even if countries manage to overcome a specific crisis – in the context of which the repayment of the loan is delayed; on the contrary, individuals cannot rely on this principle in order to protect their rights.
In order to identify and evaluate the role of conditionality as part of the policies used by the IMF and the World Bank, it would be necessary to refer to the characteristics and the framework of conditionality – as they have been identified in the literature developed in the particular field. Paloni and Zanardi (2006, 268) examined the concept of conditionality. It was noted that ‘effective conditionality is an instrument of mutual accountability; rather than imposing a position on the borrower, the Bank and its partners commit themselves to lend under certain jointly determined conditions’ (Branson and Hanna, in Paloni and Zanardi, 2006, 268). ...Download file to see next pagesRead More
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