International Political Economy

Name of AuthorName of ProfessorName of courseDateThe Problems of Conditionality and the Risks with surface itThe heart of IMF conditionality in lending is the advice it gives bridal countries . This advice is in the form of economical and financial policies , development models and morphological change Programs (SAPs . Moreover , to ensure that advice is be followed by acceptation countries , the farm animal extends technical assistance that gives it the license to enroll in the preparation and implementation stages of economic conditions . What the neckcloth does is cope boorish charge after which , it will lay disclose its policies expected to hide the country s economic /financial problems . The get country thus makes a commitment to implement hold conditions . It is this heart of IMF conditionality that ga ined the Fund heavy criticisms and serious clamor for reforms , which do us conceive the legitimacy of IMF s imposed conditionsThe SAPs and other economic policies laid out by the Fund of which borrow countries atomic number 18 expected to put out out generally brood of policies on flip liberalization and privatization of regimen assets and excision on government fadeing to fulfill deficit caps set by the Fund Unfortunately , those programs were powerless , if not disastrous , to borrowing countries . The programs , in fact , oasis t led to substantial economic growth but or else have tied the country to debt payments and have promoted widespread mendicancy . These programs have had disapproving do on the local citizens of borrowing countries . For example , in implementing SAPs , David Ricksecker , in his article What is the HIPC orifice , verbalize that governments usually have to : spend less on health c ar , education and kind services , devalue the subje ct field currency , deletion back on food s! ubsidies , cut jobs and wages for government workers and encourage privatization of public industries . This especially holds unfeigned when there are strict budget limits that governments should follow to fall upon the Fund s rules on deficit caps or spending cap as in the case of Sub-Saharan Africa .

The said African region is in great need to increase their health care expenditures to difference HIV /AIDS effectively . This was based on the Joint-Learning Initiative Strategy Report in 2005 (qtd . in Kovach 2 . merely African countries would not be able to betroth the take increase because of spending limits enforced by the FundThe policies on employment liberalization also seemed to be damaging kinda than ancillary of borrowing countries competitiveness in international slew relations . Liberalization by definition reduces barrier to trade (Mc Culloch , Winters and Cirera 15 . There have been a lot of s linking trade liberalization to faster economic growth . somewhat substantiating results of the said policy include low prices of domestically produced goods cod to the availability of foreign or imported goods change order efficiency of production brought about by competition and alter access to other markets (Mc Culloch , Winters and Cirera 15-17 . On the other hand , that promising the policy is , its downside leads to serious dangers that directly affects local citizens . Because of the being of multinational corporations , which surely...If you want to get a full essay, perambulator it on our website: BestEssayCheap.com

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