Economic adjustment and reform programs, including those supported by international financial institutions (IFIs), must cope with informational asymmetries and special interest politics. This presents a particularly serious issue when IFIs make structural economic reforms a condition for...

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...