Discuss the role of conditionality in IMF and World Bank work.
Conditionality is an important (and really only) tool that the WB and IMF have to enforce structural economic changes they believe are necessary to revive struggling economies. Rather than writing “blank checks,” these organizations enact conditionalities on loans in an attempt to ensure the money is used effectively and that issues in the domestic economy are addressed in order to prevent relapse. Yet, these conditionalities sometimes have undesirable effects, as we have seen in the reading.
Paying attention to leverage specific examples, discuss the role of conditionality in IMF and World Bank work.
How has it aided and/or hurt these organizations in fulfilling their purpose?
Lastly, discuss the future of conditionality. How should it exist going forward, if at all?
Gutner Chapter 5 (pp. 129-158)
Gutner Chapter 7 (pp. 192-214)