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- W3122671172 abstract "Economic 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 awarding economic assistance. This paper examines what conditions must be satisfied to make conditional assistance programs viable; that is, to assure that the assistance-receiving government not only takes the assistance but also implements reforms, without compromising the country’s political and the IFI’s financial stability. It is pointed out that tightly budgeted conditional assistance programs never bring about reforms, that the IFI’s cost of viable programs rise with the government’s dependence on political support from an interest group, and that unconditional assistance – while inferior to viable conditional assistance – remains an alternative when conditional assistance fails to be viable. JEL Classification: E61, F33, F34 *Mayer: University of Cincinnati, Cincinnati, Ohio, USA. Tel: 513-556-2618, Fax: 513-556-2669, E-mail: mayerw@uc.edu. Mourmouras: IMF Institute, Washington, DC, 20431; Tel: 202-623-5402; Fax: 202-5895402. Email: amourmouras@imf.org. ** Comments by Cem Karayalcin, Catherine Mann, T.N. Srinivasan, Devashish Mitra and other participants in the Conference on “Globalization: Prospects and Problems” in Honor of Jagdish Bhagwati’s 70 Birthday are greatly appreciated. Special gratitude goes to the University of Florida for hosting the event and to the conference organizers, especially Elias Dinopoulos." @default.
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- W3122671172 date "2005-06-01" @default.
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- W3122671172 title "On the Viability of Conditional Assistance Programs" @default.
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