An important and controversial practice of the World Bank is establishing an agreement so that the borrowing country must agree to a set of requirements. This practice is known as
A) conditionality.
B) tied aid.
C) structural adjustment.
D) foreign aid.

Question

Quizplus · Accepted Answer

Conditionality refers to the requirements or conditions that the World Bank imposes on borrowing countries when providing loans or grants. These conditions include economic and policy reforms that the borrowing country must undertake to receive financial assistance. This practice has been controversial as it has been criticized for imposing harsh conditions and policies on borrowing countries, leading to negative consequences such as poverty and inequality.

An Important and Controversial Practice of the World Bank Is