How to Gain the Most from Structural Conditionality of IMF-Supported Programs
IMF Working Papers, May 13, 2021
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- How to Gain the Most from Structural Conditionality of IMF-Supported Programs
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Bibliographic details
- Authors: Jochen R. Andritzky, Zsuzsa Munkacsi, Ke Wang
- Published: May 13, 2021
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513572697.001
Overview
- Structural conditionality of IMF-supported programs is designed to support structural reforms by countries borrowing from the IMF.
- The paper takes stock of program conditions and their implementation.
- It finds conditionality concentrates on areas where IMF expertise is strong and avoids some structural areas where reforms are often deep-rooted.
Key findings
- Conditionality focuses on fiscal, monetary and financial issues—areas where IMF expertise is strong.
- Conditionality shies away from structural areas such as labor or product market reforms.
- As a result, tackling deep-rooted structural issues during IMF-supported programs often remained elusive.
Evaluation framework and case studies
- The paper outlines an evaluation matrix for prioritizing and designing structural reforms.
- The evaluation matrix is applied to case studies (details and assessments are in the paper).
Policy implications and recommendations
- To ensure countries gain most from IMF conditionality, prioritize and design structural reforms using the evaluation matrix proposed in the paper.
- Emphasize areas where conditionality can be targeted to achieve meaningful structural change while recognizing limits in addressing deep-rooted reforms in labor and product markets during program periods.
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- Working Paper