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The Effectiveness of Policy Conditionality: Eight Country Experiences

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  • A. Geske Dijkstra

Abstract

This article analyses the effectiveness of the setting of policy conditions in exchange for aid. Given the emerging consensus that this process is not effective, this article focuses on explaining why not. In analysing the experiences of eight countries — Bangladesh, Cape Verde, Mozambique, Nicaragua, Tanzania, Uganda, Vietnam and Zambia — an ‘augmented’ principal–agent framework proved valuable in explaining why policy conditionality is not effective in these countries. The article concludes that donors should focus on some simple policy outcomes (ex post) instead of extensive policy conditions (ex ante).

Suggested Citation

  • A. Geske Dijkstra, 2002. "The Effectiveness of Policy Conditionality: Eight Country Experiences," Development and Change, International Institute of Social Studies, vol. 33(2), pages 307-334, April.
    • Handle: RePEc:bla:devchg:v:33:y:2002:i:2:p:307-334
    DOI: 10.1111/1467-7660.00256
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    Cited by:

    1. Åsa Persson, 2009. "Environmental policy integration and bilateral development assistance: challenges and opportunities with an evolving governance framework," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 9(4), pages 409-429, November.
    2. McCourt, Willy, 2013. "Models of public service reform : a problem-solving approach," Policy Research Working Paper Series 6428, The World Bank.
    3. Mehadi Mamun, 2021. "The Impact of Foreign Aid Conditionality on Poverty Alleviation in Bangladesh: A Recipient’s Perspective," Business and Economic Research, Macrothink Institute, vol. 11(3), pages 151-161, December.
    4. Yiagadeesen Samy & David Carment, 2019. "Aid Targeting to Fragile and Conflict-Affected States and Implications for Aid Effectiveness," Politics and Governance, Cogitatio Press, vol. 7(2), pages 93-102.
    5. Mehadi Mamun & Mamun Billah, 2021. "Privatisation and Workers’ Compensation in Privatised State-Owned Enterprises in Bangladesh," Business Management and Strategy, Macrothink Institute, vol. 12(1), pages 16-28, June.
    6. Reinsberg, Bernhard & Kern, Andreas & Rau-Göhring, Matthias, 2021. "The political economy of IMF conditionality and central bank independence," European Journal of Political Economy, Elsevier, vol. 68(C).
    7. Willy McCourt, 2018. "Towards “cognitively complex” problem‐solving: Six models of public service reform," Development Policy Review, Overseas Development Institute, vol. 36(S2), pages 748-768, September.

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