IMF Lending in Low-And Middle-Income Countries in the Wake of the Global Crisis

32 Pages Posted: 9 Apr 2011

See all articles by Andrea Filippo Presbitero

Andrea Filippo Presbitero

Università Politecnica delle Marche - Department of Economics; Centre for Macroeconomics & Finance Research (CeMaFiR)

Alberto Zazzaro

Università Politecnica delle Marche - Faculty of Economics

Date Written: November 13, 2010

Abstract

In the wake of the global crisis the International Monetary Fund (IMF) increased its exposure to low-and middle-income countries and boosted the overhaul of its lending approach to enhance its role in preventing crises. This paper tests whether IMF lending has targeted countries most affected by the crisis in order to dampen contagion effects and assesses to what extent the Fund’s strategy has been driven by political-economy interests of its major shareholders. Results show that political similarity between borrowers and G7 governments has influenced the participation in IMF programs, especially where the crisis was severe. In addition, the extent of the crisis and the economic interest of Western countries have affected the size of the loan.

Keywords: Global crisis, IMF programs, Washington Consensus, growth

JEL Classification: F33, F34, F35, O11

Suggested Citation

Presbitero, Andrea Filippo and Zazzaro, Alberto, IMF Lending in Low-And Middle-Income Countries in the Wake of the Global Crisis (November 13, 2010). Centro Studi Luca d'Agliano Development Studies Working Paper No. 305. Available at SSRN: https://ssrn.com/abstract=1805005 or http://dx.doi.org/10.2139/ssrn.1805005

Andrea Filippo Presbitero (Contact Author)

Università Politecnica delle Marche - Department of Economics ( email )

Piazzale Martelli, 8
Ancona, AN 60121
Italy
+39 0712207074 (Phone)

HOME PAGE: http://sites.google.com/site/presbitero/

Centre for Macroeconomics & Finance Research (CeMaFiR) ( email )

Piazza Mirabello, 2
Milan, 20100
Italy

Alberto Zazzaro

Università Politecnica delle Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy

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