The IMF's view of conditionality is that:

Question

Quizplus · Accepted Answer

The IMF's view of conditionality is that the adjustments required are those that promote long-run growth. The IMF seeks to ensure that borrowing countries implement policies that will lead to sustainable growth and reduce the likelihood of future balance of payment problems. Conditionality measures are designed to address the root causes of the country's economic problems while promoting long-term growth. The IMF's primary objective is to promote global financial stability, rather than earning a profit, so option C is incorrect. Option B is also incorrect because the IMF does not seek to penalize borrowing countries, but rather to encourage sustainable economic growth. Option D is partially correct because the support of the IMF can encourage growth, but this is not the only objective of conditionality measures.

The IMF's View of Conditionality Is That