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Recent Changes of IMF Conditionality and Its Effects on Social Spending

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  • Gurgen OHANYAN

    (The Bucharest University of Economic Studies, Romania)

Abstract

The IMF programs have been long criticized for having adverse effects on social spending. Yet, on the onset of the global financial crisis, it has undergone majorchanges aiming at streamlining its conditionality by introducing novel arrangements and methods to safeguard spending on health and education. Thus, the paper seeks to reveal whether the reforms have been effective and produced real change of IMF conditionality through analysing primary documents, scholarly appraisals of IMF conditionality regarding social spending. Then, by applying before-after approach to the most recent database of monitoring of Fund arrangements, the article concludes that the IMF after 30 years of imposing neoliberal views through conditionality has achieved notable improvement, since it streamlined conditionality in non-core areas of its mandate and introduced measures to protect social spending in low-income countries.

Suggested Citation

  • Gurgen OHANYAN, 2015. "Recent Changes of IMF Conditionality and Its Effects on Social Spending," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(5), pages 591-602, December.
    • Handle: RePEc:rom:rmcimn:v:16:y:2015:i:5:p:591-602
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    References listed on IDEAS

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    More about this item

    Keywords

    IMF arrangements; streamlining conditionality; social spending.;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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