How to Gain the Most from Structural Conditionality of IMF-Supported Programs

Author/Editor:

Jochen R. Andritzky ; Zsuzsa Munkacsi ; Ke Wang

Publication Date:

May 13, 2021

Electronic Access:

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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.

Summary:

Structural conditionality of IMF-supported programs is designed to support structural reforms by countries borrowing from the IMF. Taking stock of program conditions and their implementation, this paper finds that conditionality focuses on fiscal, monetary and financial issues—areas where IMF expertise is strong—and shies away from structural areas such as labor or product market reforms. Hence, tackling deep-rooted structural issues during IMF-supported programs often remained elusive. To ensure countries gain most from IMF conditionality, the paper outlines an evaluation matrix for prioritizing and designing structural reforms, and applies it to case studies.

Series:

Working Paper No. 2021/139

Subject:

Frequency:

regular

English

Publication Date:

May 13, 2021

ISBN/ISSN:

9781513572697/1018-5941

Stock No:

WPIEA2021139

Pages:

56

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