European Parliament Library

On the Viability of Conditional Assistance Programs, Wolfgang Mayer, Alex Mourmouras

Contributor
Abstract
Economic adjustment and reform programs, including those supported by international financial institutions (IFIs), must cope with informational asymmetries and special interest politics. This presents a particularly serious issue when IFIs make structural economic reforms a condition for providing economic assistance. This paper examines what conditions must be satisfied to make conditional assistance programs viable; that is, to ensure that the assistancereceiving government not only takes the assistance but also implements reforms, without compromising the country's political stability and the IFI's financial integrity. It is pointed out that tightly budgeted conditional assistance programs never bring about reforms, that the IFI's cost of viable programs rises with the dependence of the government on domestic interest groups, and that unconditional assistance might be viable when conditional assistance is not
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. THE POLITICAL ECONOMY OF THE ASSISTANCE-RECEIVING COUNTRY""; ""III. THE INTEREST GROUP AS AN OBSTACLE TO ECONOMIC REFORMS""; ""IV. VIABILITY OF CONDITIONAL ASSISTANCE PROGRAMS""; ""V. A LIKELY SCENARIO FOR PROGRAM FAILURE""; ""VI. THE GOVERNMENT�S DEPENDENCE ON INTEREST GROUPS AND CONDITIONAL LOAN VIABILITY""; ""VII. IS UNCONDITIONAL ASSISTANCE AN ALTERNATIVE?""; ""VIII. CONCLUDING REMARKS""; ""REFERENCES""
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (30 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9786613823885

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