What is conditionality, Business Economics

Assignment Help:

What is Conditionality?

Conditionality is the needs imposed onto countries as pre-conditions for loans.

Into crisis situations member countries seek assist from the IMF for example Argentina in 2002 year. The IMF gives a support conditional onto economic reforms as laid out within an SAP as an example the LDC should:

• Lower government spending balance and run balanced budget. Resultant cuts into education and health decrease welfare and hence the costs of adjustment frequently fall disproportionately onto the poorest and most vulnerable into society

• Privatisation of state owned monopolies for example a 2002 IMF loan is conditional onto privatisation of sale of Ghana's water system

• End government forced wage, interest-rate and price controls,

• End price control as well as subsidies.

• Increase real interest rates to market levels and

• Lower tariffs, end quotas and eliminate exchange controls.


Related Discussions:- What is conditionality

How do economists differ from accountants, How do economists differ from ac...

How do economists differ from accountants in the use of the term profit ? Definition of rev and accounting costs Explanation/outline of opportunity costs, for example

Explain the term end stage assessment in project management, Explain about ...

Explain about the term end stage assessment in project management methods. End stage assessment: At the end of every stage of a project, the project manager is needed to

What causes migration, What causes migration? Rural-to-urban migration...

What causes migration? Rural-to-urban migration is a usual LDC experience. Those are migrates within search of better SoL, those are generally younger, less risk adverse and b

Present value or worth of this bond, Suppose a $1,000 face value bond has a...

Suppose a $1,000 face value bond has a coupon rate of 8.5 percent, pays interest semi-yearly, and has an eight-year life. If investors are willing to take a 10.25 percent rate of r

Quantity of salt demanded, why does the quantity of salt demanded tend to b...

why does the quantity of salt demanded tend to be unresponsive to changes in its price?

How does economic system influence the development process, How does econom...

How does economic system influence the development process? The development experience of free market or capitalist and command as socialist/communist countries is extremely d

Capital income and capital expenditure, Task 1 Your line manager has as...

Task 1 Your line manager has asked you what you think the accounting department's role is in relation to the organisation. In your group, discuss the main purpose of accounti

Define the using influences of contract staff for is project, Define the us...

Define the using influences of contract staff for IS project. Use of contract staff: Such are frequently an unknown quantity.  It is reasonable to assume that people who

What are the predictions of dependency theory, What are the predictions of ...

What are the predictions of dependency theory? The predictions of dependency theory: • DCs exploit LDCs (Less Developed Countries) by extracting their surplus value. Surplu

What is the social capital, What is the social capital? Social Capita...

What is the social capital? Social Capital: Social capital is related with Putnam: Social capital considers to as features of social life as networks, norms and trust whi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd