A small country has applied for membership in an economic union.Before membership is granted,the ruling body of the union requires that the applicant state reduce its budget deficit to a specific percentage of GDP.This type of arrangement could be classified as
A) structural reform.
B) conditionality.
C) neoliberalism.
D) export-oriented adjustment.

Question

Quizplus · Accepted Answer

Conditionality refers to the conditions that an entity or institution imposes on a country or borrower in exchange for financial assistance or other benefits. In this case, the ruling body of the economic union is imposing a condition on the small country before granting its membership, which is to reduce its budget deficit. This is a form of conditionality.

A Small Country Has Applied for Membership in an Economic