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    Conditionality
 
 

The principle of ownership means that donors should no longer try to dictate development policy through conditionality.  Under the Paris Declaration, they commit to drawing their conditions, where possible, from a partner’s own national development strategy, and imposing additional conditions only where clearly justified.  In addition, donors should as far as possible use the partner country’s own performance assessment framework to assess progress against the national development plan. 

Donor practice on conditionality is not covered by the Paris Declaration monitoring process, and there are at present no overall assessments of donor performance.  However, individual donor practices are addressed in the DAC Peer Reviews.  In preparation for Accra, a report is being prepared drawing together lessons from the 14 DAC Peer Reviews completed since adoption of the Paris Declaration. 

Conditionality is also one of the themes for the OECD’s Global Forum on Development, a body which encourages dialogue between DAC and non-OECD governments and civil society.  The following is a report of a seminar in September 2007 attended by 30 developing country experts, containing a useful summary of current thinking on conditionality. 

 
     
 
 
 

Felix Zimmerman, Draft report on the Informal Expert’s Workshop “Ownership in Practice”, September 2007

 
       
   
 
     
 

A number of donors have introduced new conditionality policies to reflect the Paris Declaration, including the World Bank.

 
     
 
 
 

World Bank, “Review of World Bank conditionality”, September 2005

 
       
   
 
     
 

Other commentators contest this interpretation of the World Bank’s practice.  Some of the civil society articles cited above suggest that the Bank and the IMF still impose structural adjustment measures through their lending activities.  Others suggest that the Bank has other ways of dictating country policy.

 
     
 
 
 

ActionAid, “What progress? A shadow review of World Bank conditionality”, 2006

 
       
 
 

Wilks, Alex & Fabien Lefrancois, “Blinding with science or encouraging debate? How World Bank analysis determines PRSP policies”, 2002

 
       
 
 

Graham Bird and Thomas Willett, “IMF conditionality, implementation and the new political economy of ownership”, Comparative Economic Studies, Vol. 46(3), 2004

   
       
 
     
 

The European Union is acknowledged as leading on performance-based conditionality. 

 
     
 
 
 

The European Union’s Cotonou Agreement

   
       
   
 
     
 

For an Asian example of best practice in benchmarking rather than policy conditionality, see:

 
     
 
 
 

Agulhas, “Vietnam’s Poverty Reduction Support Credit”, September 2006

 
       
   
 
     
 

Further information

 
     
 
 
 

European Network on Debt and Development (Eurodad)

   
       
   
 
     
 

Work underway for Accra

 
     
 
  • The DAC GOVNET is preparing various contributions and case studies on governance assessments and political economy analysis.
 
     
 
 
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