What was the purpose of IMF conditionality,which was often imposed in the developing world since 1980?
A) create aid packages for impoverished countries, particularly former colonies
B) eliminate regional variations of standards of living in the developing world
C) restore growth, reduce central government involvement in the economy, and expand exports
D) reduce the disparity of wealth between the developed and developing world
E) reduce starvation in the developing world through agricultural technology

Question

Quizplus · Accepted Answer

The purpose of IMF conditionality was to restore growth, reduce central government involvement in the economy, and expand exports in the developing world. This often involved implementing policies such as austerity measures, privatization, and deregulation in exchange for IMF loans. The goal was to create economic stability and attract foreign investment. However, the effectiveness and fairness of this approach have been debated, with some arguing that it has led to increased poverty and inequality in developing countries.

What Was the Purpose of IMF Conditionality,which Was Often Imposed