New PDF release: Aid and the Political Economy of Policy Change

By Tony Killick

ISBN-10: 0203272196

ISBN-13: 9780203272190

ISBN-10: 0203446534

ISBN-13: 9780203446539

ISBN-10: 0415187044

ISBN-13: 9780415187046

This quantity appears on the effectiveness of conditionality in structural adjustment programmes. Tony Killick charts the emergence of conditionality, and demanding situations the commonly held assumption that it's a co-operative procedure, arguing that during truth it has a tendency to be coercive and damaging to improvement targets. via distinct case reports of twenty one recipient nations, he explores the foremost concerns of:* possession* function of corporations* govt pursuits and the results of policy.The end is that conditionality has been counterproductive to cost balance, fiscal progress and funding.

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The extent of public expenditure restructuring has been very limited during the adjustment era. In most countries for which data are available, more resources were allocated to services that benefit the non-poor. The bias towards higher education appears to have worsened during adjustment, and significant imbalances between spending for hospital care and primary care have also remained in the health sector. (World Bank, 1995c:15) Toye and Jackson (1996:9) suggest one reason why the IFIs have had problems achieving expenditure improvements: their conditionalities have focussed much too exclusively on budgeted figures which, however, ‘tend to be symbolic figures’ and in many cases are ‘pure fiction’.

Recall from Chapter 1 that credit tranches are released when the Bank is satisfied with the borrowing government’s compliance with trigger conditions. Delays in tranche releases are thus an indication of tardy programme execution. 2 relate to the time elapsed between a programme coming into effect and the Bank’s release of the second tranche. Since not all trigger conditions are precisely time bound, it is not possible to give an exact measure of slippage. However, most second tranche trigger conditions are expected to occur within 12 months, so a one-year cut-off is regarded by Bank staff as a reasonable measure of delays.

By the same token, they have limited power to do the harm their critics allege. Both Fund and Bank programmes appear to have been instrumental in strengthening export and BoP performance; they seem largely powerless to make much difference to inflation; they do not typically accelerate growth much, nor do they usually force EFFECTS OF CONDITIONALITY 27 economies into recession; however, the programmes of both agencies are clearly and consistently associated with reduced investment levels, which, if sustained, must exert a drag on economic progress in the longer term.

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Aid and the Political Economy of Policy Change by Tony Killick

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