Once Bitten: New Evidence on the Link between IMF Conditionality and IMF Stigma

Andone, Irina; Scheubel, Beatrice

doi:10.2139/ssrn.3372048

Cited by 14 publications

(1 citation statement)

References 25 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Stigma related to the DSSI-required request for IMF assistance may constitute an additional cost. 13 13 See Scheubel et al (2018) and Andone and Scheubel (2019) for a discussion of financial market and political stigma vis-à-vis IMF assistance.…”

Section: Figurementioning

confidence: 99%

Towards HIPC 2.0? Lessons from Past Debt Relief Initiatives for Addressing Current Debt Problems

Essers¹,

Cassimon²

2022

Journal of Globalization and Development

View full text Add to dashboard Cite

When the COVID-19 pandemic added to already elevated debt vulnerabilities in low-income countries, the G20 launched the Debt Service Suspension Initiative (DSSI) and the Common Framework for Debt Treatments beyond the DSSI, which have provided limited relief so far. For several countries, deeper and more wide-ranging debt treatments will likely be needed to secure future debt sustainability. This paper looks at the Heavily Indebted Poor Countries (HIPC) initiative, the largest and most comprehensive debt relief effort for low-income countries to date, as a potential reference point for the 2020s. While the HIPC initiative appears to have been a qualified success, its replication in the current context would be infeasible and undesirable. Creditor base heterogeneity justifies a more flexible, differentiated approach to debt restructuring. Yet, the HIPC experience holds valuable lessons. “Delay and replay” tendencies should be avoided. Involving commercial creditors is a real challenge, requiring carrots and sticks. And imposing extra conditionality on debt relief proceeds could be helpful but should not be overdone. Even if the Common Framework is unlikely to suffice in case of a systemic debt crisis, its inter-creditor dialogue could perhaps serve as the basis for a more inclusive advisory body or forum for debt restructuring.

show abstract

Section: Figurementioning

confidence: 99%

Towards HIPC 2.0? Lessons from Past Debt Relief Initiatives for Addressing Current Debt Problems

Essers¹,

Cassimon²

2022

Journal of Globalization and Development

View full text Add to dashboard Cite

show abstract

A Thousand Cuts

Kentikelenis

Stubbs

2023

View full text Add to dashboard Cite

The dominant policy response to economic crises over the past four decades has been the introduction of austerity. How has this mix of budget cuts and reforms to downsize the role of the state evolved over time? What affect has it had on social policies and on people’s lives? This book examines the activities of the world’s leading advocate of austerity: the International Monetary Fund (IMF). This international organization lends to countries facing economic trouble in exchange for the implementation of far-reaching austerity measures. Drawing on new data, the authors reveal that although the precise content of IMF-mandated austerity has changed considerably over time, the organization continues to place a high burden of reform on countries in crisis. These reforms then decrease the availability of important social services, and contribute to rises in income inequality and declines in population health. These findings form the first systematic assessment of how austerity has impacted people’s lives and livelihoods around the world. Will such policy mistakes be avoided in the postpandemic world? The early evidence presented in this book do not raise grounds for optimism. Public expenditure projections reveal that in 2023, 86 out of 189 countries—mostly middle-income ones—face contractions in government spending compared to their 2010s average, thereby exposing a cumulative total of 2.3 billion people to the socioeconomic consequences of budget cuts.

show abstract