This paper presents an analytical discussion of IMF conditionality based on the theory of special interest politics. We outline a simple political-economy model of special interest group politics, extended to include the interaction of the IMF with the government of a country making use of IMF...

The paper models the relationship between an aid-providing international financial institution (IFI) and an aid-receiving government whose economic policy choices are influenced by a domestic interest group. Two assistance schemes are evaluated: conditional aid in which the IFI makes assistance...