Author : Wolfgang Mayer
Publisher : INTERNATIONAL MONETARY FUND
ISBN 13 : 9781451861402
Total Pages : 29 pages
Book Rating : 4.8/5 (614 download)
Book Synopsis On the Viability of Conditional Assistance Programs by : Wolfgang Mayer
Download or read book On the Viability of Conditional Assistance Programs written by Wolfgang Mayer and published by INTERNATIONAL MONETARY FUND. This book was released on 2005-06-01 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic adjustment and reform programs, including those supported by international financial institutions (IFIs), must cope with informational asymmetries and special interest politics. This presents a particularly serious issue when IFIs make structural economic reforms a condition for providing economic assistance. This paper examines what conditions must be satisfied to make conditional assistance programs viable; that is, to ensure that the assistancereceiving government not only takes the assistance but also implements reforms, without compromising the country's political stability and the IFI's financial integrity. It is pointed out that tightly budgeted conditional assistance programs never bring about reforms, that the IFI's cost of viable programs rises with the dependence of the government on domestic interest groups, and that unconditional assistance might be viable when conditional assistance is not.