Abstract:

Conditionality has been used to induce reform. The rather disappointing results of this approach have led to a gradual redesign of the aid contract, toward a shorter period and more detailed conditions. The logical conclusion of this approach is for reforms to be priced piecemeal. Such an approach is fundamentally incompatible with government ownership of policy and hence reduces the credibility of reforms. Further, this attempt to induce reform has crowded out other uses of conditionality. W...

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