What is conditionality in aid?
In the context of this paper, conditionality refers to policy changes which an aid donor agency stipulates a government must undertake in order to obtain, or retain, access to the donor’s financial support; it is an exchange of money for policy action.
What is Process conditionality?
One of the most prominent features of the 2004 enlargement process was conditionality, defined as the linking, by a state or international organisation, of perceived benefits to the fulfilment of certain conditions.
What is conditionality World Bank?
In political economy and international relations, conditionality is the use of conditions attached to the provision of benefits such as a loan, debt relief or bilateral aid.
Why is conditionality that is often attached to bailout loans controversial?
Conditionality, even that purely based on economic factors, can be controversial. Conditionality applied to the public benefit or aid programs is sometimes criticized as overly paternalistic and an undue burden on the autonomy or human rights of the recipients.
How do structural adjustment programs work?
A structural adjustment is a set of economic reforms that a country must adhere to in order to secure a loan from the International Monetary Fund and/or the World Bank. Structural adjustments are often a set of economic policies, including reducing government spending, opening to free trade, and so on.
What does the giving of foreign aid involve?
Foreign aid can involve a transfer of financial resources or commodities (e.g., food or military equipment) or technical advice and training. The most common type of foreign aid is official development assistance (ODA), which is assistance given to promote development and to combat poverty.
What is the purpose of the loans made by the World Bank?
Its role is to reduce poverty by lending money to the governments of its poorer members to improve their economies and to improve the standard of living of their people. The Bank is also one of the world’s largest research centers in development.
Why are structural adjustment programs good?
Their purpose is to adjust the country’s economic structure, improve international competitiveness, and restore its balance of payments. SAPs are created with the stated goal of reducing the borrowing country’s fiscal imbalances in the short and medium term or in order to adjust the economy to long-term growth.
Which is the best definition of aid effectiveness?
Aid effectiveness is the effectiveness of development aid in achieving economic or human development (or development targets). Aid agencies are always looking for new ways to improve aid effectiveness, including conditionality, capacity building and support for improved governance.
What is the purpose of conditionality in aid?
The principal motivation behind this sort of conditionality is that the recipient country has some sort of economic trouble requiring the loan, debt relief, or aid.
Which is the best definition of conditionality?
DEFINITION of Conditionality. Conditionality refers to the conditions attached to the provision of loans, debt relief or aid, by the provider to the recipient. The recipient is usually a sovereign government.
Why was conditionality important during the Cold War?
Once the Cold War ended, Western donors were able to enforce aid conditionality better because they no longer had geopolitical interests in recipient countries. This allowed donors to condition aid on the basis that recipient governments make economic changes as well as democratic changes.
