Designing Expenditure Policy Conditionality in IMF-Supported Programs
IMF Working Papers, January 24, 2025
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- Designing Expenditure Policy Conditionality in IMF-Supported Programs
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Bibliographic details
- Authors: Emine Hanedar, Zsuzsa Munkacsi
- Published: January 24, 2025
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400298417.001
Summary and Purpose
- Provides granular advice on how to design quantitative and structural conditionality of IMF-supported programs.
- Focuses on six expenditure policy areas: social assistance, energy subsidies, pension spending, health spending, education spending, and wage bill management.
- Emphasizes the role of conditions to identify outcomes or actions seen as critical for program success or monitoring and their importance for financial support countries can receive from the Fund.
Scope and Methodology
- Based on a stocktaking exercise: an analysis of 105 programs approved between 2002 and July 2021 containing c.a. 1400 conditions.
- Paper type: IMF Working Paper intended to describe research in progress and elicit comments and debate.
Major Findings (as presented)
- The paper offers granular, area-specific advice for designing quantitative and structural conditionality across six expenditure policy areas.
- Conditions are instrumental to (a) identifying critical outcomes or actions for program success and (b) monitoring progress tied to Fund financial support.
Policy Guidance and Recommendations (high-level synthesis from source)
- Design conditionality that is granular and tailored to the specific expenditure policy area:
- Social assistance
- Energy subsidies
- Pension spending
- Health spending
- Education spending
- Wage bill management
- Use stocktaking evidence from past programs to inform conditionality design and monitoring frameworks.
Content in this bundle
- Working Paper