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 acceptation countries . This advice is in the form of economic and financial policies , development models and Structural change Programs (SAPs . Moreover , to ensure that advice is being followed by borrowing countries , the farm animal extends technical assistance that gives it the license to participate in the preparation and implementation stages of economic conditions . What the neckcloth does is conduct country charge after which , it will lay out its policies expected to hide the country s economic /financial problems . The borrowing country thus makes a commitment to implement agreed conditions . It is this heart of IMF conditionality that gained the Fund heavy criticisms and serious clamor for reforms , which made us conceive the legitimacy of IMF s imposed conditionsThe SAPs and other economic policies laid out by the Fund of which borrowing countries are expected to put out out generally consist of policies on flip liberalization and privatization of government assets and excision on government spending 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 effects on the local citizens of borrowing countries . For example , in implementing SAPs , David Ricksecker , in his article What is the HIPC Initiative , verbalize that governments usually have to : spend less on health care , education and social services , devalue the subject field currency , cut back on food subsidies , 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 fight HIV /AIDS effectively . This was based on the Joint-Learning Initiative Strategy Report in 2005 (qtd . in Kovach 2 . However African countries would not be able to betroth the needed increase because of spending limits enforced by the FundThe policies on commerce liberalization also seemed to be damaging kinda than supportive of borrowing countries competitiveness in international trade 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 positive results of the said policy include low prices of domestically produced goods due to the availability of foreign or imported goods change magnitude efficiency of production brought about by competition and meliorate access to other markets (Mc Culloch , Winters and Cirera 15-17 . On the other hand , moreover 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, rig it on our website: Orderessay

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