Abstract
The issue of cross-conditionality arises in the context of a veritable explosion of conditionality that characterised the 1980s. Not only are many developing country governments having to negotiate simultaneously with different international or bilateral institutions at the same time, but a far higher proportion of loans granted by each agency have tighter conditions than in the past, and these conditions relate to a far broader range of policy issues than in the past. The number of developing countries thus affected is also very large, because so many countries have been obliged to seek IMF/World Bank and bilateral official lending, as their foreign exchange situation has deteriorated in the early 1980s and indeed as IMF/World Bank lending has become an almost obligatory part of debt-rescheduling/new money packages; as a result, cross-conditionality and enhanced conditionality is a problem largely related to countries with severe foreign exchange strangulation, usually — but not always — manifesting themselves in debt crises. It is therefore highly concentrated geographically in Latin America and Africa. Indeed, those critical of the type of policy conditionality implied in IMF/World Bank lending could argue that these countries are suffering simultaneously from (1) inherited effects of mistaken or inadequate policies in the past, (2) severe shocks coming from the ‘darkening’ international environment in the 1980s, and (3) pressure from the World Bank, IMF and other institutions to undergo structural transformations, several of which may not be consistent with the governments’ objectives.
It is apparent that the 1980’s have seen a veritable explosion of conditionality.
(Tony Killick)1
It is very important for a doctor who is administering an experimental drug to a guinea pig not to pretend that his remedy is backed up by unanimous scientific wisdom.
(Paul Mosley and John Toye)2
So after a while you end up with so many rules of conditionality and cross-conditionality that you give the government no leeway to decide a proper adjustment policy well adapted to their internal needs.
(David Ibarra)3
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Notes
Tony Killick (1987) ‘Issues in the Spread and Design of Obligatory Adjustment Programmes’, Paper presented to ESRC Conference on Debt and Stabilization in the Third World, University of Essex, 29–30 October 1987.
Paul Mosley and John Toye (1987) ‘The Design of Structural Adjustment Programmes’, paper presented at ODI Conference, 10–11 September 1987.
The former in a WIDER Report; the latter for example in Balassa et al. (1986) Towards Renewed Economic Growth in Latin America, Institute for International Economics, Washington DC.
Mosley and Toye, (1987) op. cit.
In the previous research project, funded by IDRC-ESRC, we also highlighted the role of bargaining in determining the type of deal on debt and adjustment (see S. Griffith-Jones (ed.) (1988)) Managing World Debt (Sussex: Wheatsheaf New York: St Martin’s Press, and Fondo de Cultura Económica, Mexico).
Berg, E. and Batchelden, E. (1984) Structural Adjustment Lending: A Critical Analysis (Alexandria, Virginia: Elliot Berg Assoc.).
See Kahn, M. and Knight, M. (1985) Fund Supported Adjustment Programs and Economic Growth occasional paper no. 41, November 1985.
For an excellent and comprehensive discussion, see Cornia, A., Jolly, R. and Stewart, F. (eds) (1987) Adjustment with a Human Face, (Oxford University Press, and Siglo XXI, 1987).
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© 1992 Ennio Rodríguez
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Griffith-Jones, S. (1992). Cross-conditionality or the Spread of Obligatory Adjustment: A Review of the Issues and Questions for Research. In: Rodríguez, E., Griffith-Jones, S. (eds) Cross-Conditionality Banking Regulation and Third-World Debt. Macmillan International Political Economy Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-12416-9_3
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DOI: https://doi.org/10.1007/978-1-349-12416-9_3
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