Economic Theory

Download e-book for kindle: Aid and the Political Economy of Policy Change by Tony Killick

By Tony Killick

ISBN-10: 0203272196

ISBN-13: 9780203272190

ISBN-10: 0203446534

ISBN-13: 9780203446539

ISBN-10: 0415187044

ISBN-13: 9780415187046

This quantity seems 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 technique, arguing that during truth it has a tendency to be coercive and hazardous to improvement targets. via precise case reviews of twenty one recipient international locations, he explores the most important concerns of:* possession* function of enterprises* executive targets and the results of policy.The end is that conditionality has been counterproductive to cost balance, fiscal development and funding.

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Sample text

These conclusions were influential. They were welcomed and endorsed by the Executive Board, with the IMF’s 1993 Annual Report (p. 61) inferring that ESAF ‘had proved an effective mechanism for Fund involvement in low-income countries’, and they may well have played a crucial role in the Board’s decision to renew ESAF in 1994. However, if indeed the Board was swayed by the findings of this report it was probably misguided to be so influenced. From the perspective of this chapter, the study had the basic weakness of not differentiating outcomes according to the extent of programme implementation— important because we have already shown major slippages in ESAF programmes.

In order to assess that we need to take a view of what would have happened in the absence of the programmes. But the counterfactual is unknowable. All we can do is to 20 EFFECTS OF CONDITIONALITY find ways of simulating what might have happened, and one of the most important questions that can be asked of any particular method of evaluating programme effects is, how well does it cope with the problem of the counterfactual? It is particularly important to deal with this because, otherwise, results can be seriously distorted by differences in countries’ initial situations and by the intervention of exogenous shocks.

8 per cent in the most recent year, and the report cautioned that external viability remained elusive, with visible improvements in only eleven of the nineteen. These conclusions were influential. They were welcomed and endorsed by the Executive Board, with the IMF’s 1993 Annual Report (p. 61) inferring that ESAF ‘had proved an effective mechanism for Fund involvement in low-income countries’, and they may well have played a crucial role in the Board’s decision to renew ESAF in 1994. However, if indeed the Board was swayed by the findings of this report it was probably misguided to be so influenced.

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Aid and the Political Economy of Policy Change by Tony Killick


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