Review of the 2002 Conditionality Guidelines

Policy Papers, September 7, 2005

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Bibliographic details

Authors: Tubagus Feridhanusetyawan, Alun H. Thomas, Tessa Van der Willigen, Uma Ramakrishnan, S. Reichold, Juan Zalduendo, James P Walsh
Published: September 7, 2005
Series: Policy Papers
DOI: https://doi.org/10.5089/9781589064911.007

Overview

The paper examines the expansion of the 2004–2005 conditionality review to include a review of the application of the Guidelines on Conditionality adopted in 2002.
The 2002 Guidelines were the first revision of the IMF’s conditionality guidelines since 1979 and were developed after seeking input from civil society and public forums held in several countries.
The Guidelines aimed to enhance the effectiveness of IMF-supported programs.

Key findings and limitations

The review is conducted at an early stage of experience with the 2002 Guidelines; further evidence is needed before definite conclusions can be drawn.
The ultimate test of conditionality is whether it contributes to better economic outcomes, including over the medium term; such outcomes cannot yet be gauged.
The review draws in part on case studies, but:
- No substitute exists for cross-country analysis to identify broad trends.
- Cross-country analysis is currently hampered by small sample sizes.

Subjects and keywords highlighted in the paper

Subjects: Balance of payments, Balance of payments need, Banking, Civil society, Economic sectors, Financial sector, Public enterprises, Taxes, Value-added tax
Keywords: appropriateness of the guideline; Balance of payments need; Civil society; conditionality guideline; conditionality review; core area; extent of recent change; Financial sector; Fund arrangement; Fund-supported program; MISC PUBS; Misc.; Public enterprises; staff statement; Value-added tax; waiver policy; way conditionality

Implications for assessment and future work

Additional evidence and longer-term outcomes are required to assess whether conditionality, as shaped by the 2002 Guidelines, improves economic performance.
Broader cross-country analysis with larger samples is necessary to identify broad trends in the application and effectiveness of the Guidelines.

Review of the 2002 Conditionality Guidelines, Policy Papers 2005, 092 (2005), by Tubagus Feridhanusetyawan, Alun H. Thomas, Tessa Van der Willigen, Uma Ramakrishnan, S. Reichold, Juan Zalduendo, James P Walsh.