Cover IMF Working Papers
IMF Conditionality and Country Ownership of Programs
Author: Mr. Mohsin S. Khan and Mr. Sunil Sharma
Series:
IMF Working Papers
Volume/Issue:
Volume 2001: Issue 142
Language:
English
Publication Date:
01 Sep 2001
DOI:
https://doi.org/10.5089/9781451856255.001
ISBN:
9781451856255
ISSN:
1018-5941
Pages:
32
Keywords:
WP; country authorities; IMF lending; country ownership; adjustment program; borrowing country; IMF resource; IMF staff; IMF-supported programs; conditionality; ownership; principal-agent; moral-hazard; ownership of program; venture capitalist; borrowing government; government's responsibility; country preference; negotiating position; country undertaking; democratized country environment; Structural reforms; Loans; Moral hazard; Collateral; International reserves; Africa
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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The paper uses finance and agency theory to establish two main propositions: First, that the conditionality attached to adjustment programs supported by the IMF is justified. Second, that ownership of programs by the borrowing country is crucial for their success. Hence, since both IMF conditionality and country ownership are necessary, the task is one of designing conditionality to maximize program ownership, subject to providing adequate safeguards for IMF lending. The paper discusses some recent proposals for enhancing ownership, and in particular, makes a case for incorporating floating tranches and outcomes-based conditionality in IMF-supported adjustment programs.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund