Conditionalities

Definition

Conditionalities are policy requirements and reform measures that International Organizations like the World Bank and IMF impose on countries as a condition for receiving financial assistance. They aim to promote economic stability, structural adjustments, and governance reforms in recipient countries.

Related terms

Structural Adjustment Programs: These are comprehensive economic policies imposed by International Organizations on debtor countries that often involve austerity measures, market liberalization, and privatization.

Economic Stability: Refers to maintaining stable prices, low inflation rates, low unemployment levels, and sustainable economic growth within a country.

Governance Reforms: These refer to improvements made in the way a country is governed through measures such as increased transparency, accountability, and anti-corruption initiatives.