In September 1999, the International Monetary Fund (IMF) established the Poverty Reduction and Growth Facility (PRGF … in its poorest member countries. This paper studies the spending and absorption of aid in PRGF-supported programs … stability influence the programmed use of aid. The paper shows that PRGF-supported programs permit countries to utilize all …

actual public spending is shifting towards poverty-reducing activities incountries with a PRGF program. In particular, the …