EconPapers    
Economics at your fingertips  
 

Limits of Conditionality in Poverty Reduction Programs

Tito Cordella and Giovanni Dell'Aricca
Additional contact information
Giovanni Dell'Aricca: International Monetary Fund

IMF Staff Papers, 2002, vol. 49, issue Special issue, 68-86

Abstract: When donors and recipients have different preferences over budgetary allocations, conditionality helps the implementation of donor-financed poverty reduction programs. If donors cannot perfectly monitor all recipients' actions, however, conditionality entails an inefficient allocation of resources. Under such conditions, the optimal amount of conditionality varies (often not monotonically) with the recipients' degree of social commitment. Finally, if recipients' preferences are not observable, conditionality can be used to prevent recipients with a weak commitment to poverty reduction from obtaining aid funds. This may, however, lead to further distortions in terms of resource allocation and to phenomena of “aid rationing.” Copyright 2002, International Monetary Fund

Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.palgrave-journals.com/imfsp/journal/v49/SI/pdf/cordella.pdf main text (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Limits of Conditionality in Poverty Reduction Programs (2002) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:imfstp:v:49:y:2002:i:si:p:68-86

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2

Access Statistics for this article

More articles in IMF Staff Papers from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-19
Handle: RePEc:pal:imfstp:v:49:y:2002:i:si:p:68-86