Why does the ​IMF​ impose conditionality on countries that accept its loans?

Responses

The ​IMF​ wants to help fix the economies of countries that need its help.
The ​ I M F ​ wants to help fix the economies of countries that need its help.

The ​IMF​ wants to get all countries to accept free-trade policies.
The ​ I M F ​ wants to get all countries to accept free-trade policies.

The ​IMF​ wants to impose uniform regulations on the international banking system.
The ​ I M F ​ wants to impose uniform regulations on the international banking system.

The ​IMF​ wants to make sure that the money it loans results in sustainable development.

1 answer

The correct response is:

The IMF wants to make sure that the money it loans results in sustainable development.

IMF conditionality typically involves requiring countries to implement specific economic policies and reforms as a condition for receiving financial assistance. These conditions are intended to address the underlying issues that led to the need for assistance and to promote long-term economic stability and growth.