A discussion and critique of the main points in a prominent World Bank report on aid policy and conditionality - “Assessing Aid, What Works, What Doesn’t and Why”. The Bank’s report is very frank about the many failures of aid financing, but its proposals of targeting finance to good performing countries are controversial (1999).
The IMF with multilateral banks and other donors has agreed a $41bn package to help Brazil fend off international currency speculators.
In response to the external ESAF Review, the World Bank is to collaborate with the IMF in pilot projects in Nicaragua, Vietnam, Tajikistan, Ethiopia, Cameroon and Zimbabwe over the next 12-18 months.
More flexibility and a new approach was suggested in the external review of the Enhanced Structural Adjustment Facility (IMF loans to poorer countries) published in March.
A country assistance strategy (CAS) identifies “high”, “base” and “low” case lending scenarios - which one a country initially receives depends on its economic prospects.