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How Does Conditional Aid (Not) Work? / Rodney Ramcharan.
- Format:
- Book
- Government document
- Author/Creator:
- Ramcharan, Rodney.
- Series:
- IMF Working Papers; Working Paper ; No. 2002/183
- IMF Working Papers
- Language:
- English
- Physical Description:
- 1 online resource (26 pages)
- Place of Publication:
- Washington, D.C. : International Monetary Fund, 2002.
- Language Note:
- English
- Summary:
- Does policy conditionality worsen domestic welfare, as governments are forced to attempt unpopular reforms resulting in damaging protests, or does conditionality help implement reforms that otherwise would have been impossible? This paper analyzes these questions. Using a game-theoretic framework, it argues that the impact of conditional aid on welfare is nonmonotonic. Sufficiently conditioned aid can enhance the signaling power of reform announcements, thereby deterring protest and enabling reform. In contrast, inadequately conditioned aid may induce a "weak" government to mistakenly attempt reform, resulting in protest and a worsening of domestic welfare relative to the status quo.
- Notes:
- Bibliographic Level Mode of Issuance: Monograph
- Description based on print version record.
- ISBN:
- 9786613800435
- 9781462376087
- 1462376088
- 9781452756240
- 1452756244
- 9781282107083
- 1282107089
- 9781451904680
- 1451904681
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