An IEO Evaluation of Structural Conditionality in IMF Supported Programs
IMF Independent Evaluation Office
IMF efforts since 2000 to reduce the number and scope of structural conditions in its loans have essentially had no impact, says the IMF’s internal auditor, the Independent Evaluation Office (IEO), in a report released this month. Furthermore, the report found that a third of IMF conditions still fall outside the institution’s area of expertise and in many cases include conditions that are not critical to IMF objectives. Consequently, the Report recommends further “streamlining” to get the Fund to select conditions that are ‘critical’ and within its core areas of responsibility - fiscal and monetary policy. Fund Management and the Board of Directors broadly agreed with the study’s findings, even though it essentially means reaffirming Conditionality Guidelines for the IMF already approved back in 2002.
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