Does policy conditionality worsen domestic welfare, as governments are forced to attempt unpopular reforms resulting in … damaging protests, or does conditionality help implement reforms that otherwise would have been impossible? This paper analyzes …

This paper assesses whether conditionality in IMF-supported programs has helped offset the potential negative effect of …-income countries-shows that growing use of revenue conditionality by low-income countries partially offsets the depressing effect of … foreign grants on tax revenue, particularly on taxes on goods and services. The impact of conditionality is strong in …

When donors and recipients have different preferences over budgetary allocations, conditionality helps the …, conditionality entails an inefficient allocation of resources. Under such conditions, the optimal amount of conditionality varies … observable, conditionality can be used to prevent recipients with a weak commitment to poverty reduction from obtaining aid funds …

be subject to conditionality. We show that budget support is preferable to project aid when donors and recipients …