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Middle East and Central Asia > Yemen, Republic of

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Cover IMF Working Papers
How Does Conditional Aid (Not) Work?
Mr. Rodney Ramcharan
Does policy conditionality worsen domestic welfare, as governments are forced to attempt unpopular reforms resulting in damaging protests, or does conditionality help implement reforms that otherwise would have been impossible? This paper analyzes these questions. Using a game-theoretic framework, it argues that the impact of conditional aid on welfare is nonmonotonic. Sufficiently conditioned aid can enhance the signaling power of reform announcements, thereby deterring protest and enabling reform. In contrast, inadequately conditioned aid may induce a "weak" government to mistakenly attempt reform, resulting in protest and a worsening of domestic welfare relative to the status quo.
Keywords:
WP; economic reform; status quo; conditionality; policy reform; IFI involvement; reform announcement; weak government; participation constraint; Multilateral development institutions
Cover Policy Papers
The Modalities of Conditionality - Further Considerations
International Monetary Fund
NULL
Keywords:
PP; Fund resource; Fund arrangement; Fund's financing; Fund-supported program; Inter-American Development Bank; tranche disbursement; policy slippage; Structural reforms; Privatization; Multilateral development institutions; Sub-Saharan Africa
Cover IMF Working Papers
The Composition and Distribution of Financial Assistance From Arab Countries and Arab Regional Institutions
International Monetary Fund
This paper examines the volume and distribution of concessional and nonconcessional financial flows from Arab countries, and aid agencies, and regional institutions to developing countries. Arab financial assistance increased very rapidly from 1973 to 1980 in line with the rapid growth in oil revenues. Essentially because of the softer oil market, this trend was reversed in the 1980s. Nonetheless, the Arab contributions as a share of GNPs remain by far the most generous among the major donor groups. Arab recipient countries received nearly 62 percent of total Arab financial assistance. Together with large flows of workers’ remittances, this assistance accelerated their economic development beyond what would have been otherwise possible.
Keywords:
WP; balance of payments; economic development; gross national product; recipient country; net disbursement; net importer; debtor country; outstanding balance; donor country; Loans; Concessional external borrowing; Project loans; Imports; Balance of payments assistance; Middle East; Africa; Sub-Saharan Africa; Asia and Pacific; Europe