How to Gain the Most from Structural Conditionality of Imf-Supported Programs

56 Pages Posted: 4 Feb 2022

See all articles by Jochen R. Andritzky

Jochen R. Andritzky

International Monetary Fund (IMF); German Council of Economic Experts

Zsuzsa Munkacsi

International Monetary Fund (IMF)

Ke Wang

International Monetary Fund (IMF)

Date Written: May 1, 2021

Abstract

Structural conditionality of IMF-supported programs is designed to support structural reforms by countries borrowing from the IMF. Taking stock of program conditions and their implementation, this paper finds that conditionality focuses on fiscal, monetary and financial issues—areas where IMF expertise is strong—and shies away from structural areas such as labor or product market reforms. Hence, tackling deep-rooted structural issues during IMF-supported programs often remained elusive. To ensure countries gain most from IMF conditionality, the paper outlines an evaluation matrix for prioritizing and designing structural reforms, and applies it to case studies.

JEL Classification: F31, E26

Suggested Citation

Andritzky, Jochen and Andritzky, Jochen and Munkacsi, Zsuzsa and Wang, Ke, How to Gain the Most from Structural Conditionality of Imf-Supported Programs (May 1, 2021). IMF Working Paper No. 2021/139, Available at SSRN: https://ssrn.com/abstract=4026315

Jochen Andritzky (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

German Council of Economic Experts ( email )

Federal Statistical Office
Gustav-Stresemann-Ring 11
Wiesbaden, Hessen 65180
Germany

Zsuzsa Munkacsi

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Ke Wang

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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