Towards a More Effective Conditionality - An Operational Framewok

The “inducement” function of conditionality has failed. Its intrusive, shortsighted and ineffective character is now increasingly criticized, and may have contributed, at least in part, to the poor growth performance associated with adjustment programs in sub-Saharan Africa. This article proposes a new approach to conditionality attached to adjustment programs. It is built around three main features: recipient ownership of the appropriate reform program, considered to be a key factor for success; a more long-term approach to economic reform, avoiding in particular the disruptive practice of stop-go disbursements, and enhanced donor coordination as a factor for greater aid efficiency. Its implementation should lead to greater aid selectivity in favor of reforming countries, increased responsibility for aid recipients to decide on the rhythm and sequencing of reforms, and smoother aid flows with less disruptive aid suspensions