Title: Similarities and differences of IMF conditionality clause in Latin American and Euroarea states: a critical appraisal

Authors: Konstantinos J. Hazakis; Georgios C. Chatzievangelou

Addresses: Department of Economics, Democritus University of Thrace, University Campus, PC 69100, Komotini, Greece ' Department of Economics, Democritus University of Thrace, University Campus, PC 69100, Komotini, Greece

Abstract: The article investigates the conditionality clause implementation through adjustment programs in selected countries of Latin America and Eurozone, from 1991 to 2014. The analysis unveils key similarities and differences in three issue areas, namely macroeconomic policy, fiscal policy and structural policy. Based on institutional analysis approach the article argues that real economic convergence, structural economic transformation and social development are undermined by fiscal priorities embedded in adjustment programs and IMF conditionality terms. The main conclusion is that redesign of conditionality should equally favour economic efficiency and social equity.

Keywords: IMF conditionality; economic adjustment programmes; EAPs; Latin America; Eurozone; International Monetary Fund; macroeconomic policy; fiscal policy; structural policy; economic convergence; structural economic transformation; social development; fiscal priorities; economic efficiency; social equity.

DOI: 10.1504/IJDIPE.2016.081212

International Journal of Diplomacy and Economy, 2016 Vol.3 No.2, pp.91 - 111

Received: 20 Oct 2015
Accepted: 30 Jun 2016
Published online: 28 Dec 2016 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article