Aid and the Political Economy of Policy Change

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This path-breaking study in political economy scrutinizes the theory and practice of conditionality, drawing chiefly on the experiences of twenty-one developing countries. The fatal weakness of conditionality, the book concludes, is that donors are unwilling or unable to

withhold aid from governments which renege on policy promises. Deep-rooted factors stand in the way of making conditionality more effective, reliance on which has hence wasted much aid. The book therefore presents ideas from improving donor-recipient relationships in ways which do not

rely on an imagined financial leverage.

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Editorial Reviews

Charts the growth of conditionality and challenges the official view that it is not coercive, using evidence on World Bank and International Monetary Fund adjustment programs to show that these have often not brought decisive improvements in policies or economic outcomes. Through detailed case studies of 21 developing countries, regional studies, and other evidence since the 1980s, this study employs a principal-agent framework to explore the reasons for this failure. Includes a large fold-out table on economic policy reforms in 21 developing countries, 1980-94. Killick is a senior research fellow of the Overseas Development Institute, London, and a visiting professor at the University of Surrey. Annotation c. Book News, Inc., Portland, OR (
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Product Details

  • ISBN-13: 9780415187046
  • Publisher: Taylor & Francis
  • Publication date: 10/15/1998
  • Pages: 255
  • Product dimensions: 6.14 (w) x 9.21 (h) x 0.63 (d)

Table of Contents

List of tables
List of abbreviations
1 The practice and justification of conditionality 1
2 What has adjustment conditionality achieved? 19
3 Conditionality and adjustment in South-east Asia and Latin America 53
4 The 'ownership' problem 85
5 The model, the research, some results 100
6 Rewards, punishments and the influence of national politics 129
7 Alternatives to conditionality 160
Master Table: Summery results on conditionality and economic policy reforms in 21 developing countries, 1980-94 199
Bibliography 201
Index 214
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