Time Past and Time Present : A Duration Analysis of IMF Program Spells

The programs of the IMF were designed to provide short-term assistance to countries with balance-of-payments disequilibria. Over time, however, the Fund instituted new facilities with longer time horizons, while many countries adopted consecutive programs. As a result, the length of time spent by countries in IMF programs has grown. This paper analyzes IMF program spells for a group of developing economies over the period of 1982-2000. Duration models are used to investigate the time dependence of the spells and the factors that affect their duration. The hazard ratio of spells has a nonmonotonic shape, first rising and then falling. Spell duration is independent of previous spell length or the number of spells. Program duration is extended for countries with lower income, exports concentrated in primary goods, landlocked geographic status and autocratic regimes. Governments that are polarized have shorter spells, which may reflect a breakdown in governance