But that destination comes with a heavy conditionality.

All variants of Eurobonds come with supposedly strong conditionality.

Some progress in streamlining conditionality of aid flows is emerging.

(The new, gentler IMF has sworn off such harsh conditionality for Greece.)

The most important task will be to create a new type of political conditionality.

Admittedly, this would require departing from the Fund s traditional lending in exchange for conditionality.

To allay anxiety about government profligacy, the ECB built conditionality into its bond purchase program.

The challenge is to find the right mix of pre approval, limited conditionality, and speed.

But, by insisting on such conditionality, she would trigger a huge political crisis in Europe.

Many participants expressed concern about the current distribution, volume, trends, effectiveness and conditionality of aid.

Neither should this paragraph be seen as a conditionality in order to force any budget decision.

The IMF took steps in this direction in March, particularly by creating the Flexible Credit Line for crisis prevention purposes, as well as expanding other credit lines and overhauling conditionality (relying more on ex ante conditionality and eliminating structural performance criteria).

Even in Europe, with its long history of cooperation, surveillance and conditionality are outsourced to the IMF.

Both initiatives were coordinated with the International Monetary Fund, ensuring strict conditionality on the external finance obtained.

But aid conditionality and treaty commitments have significantly constrained policymaking in most developing countries, especially the poorest.

When Bank research showed that conditionality did not work, the Bank under Wolfensohn moved away from it.

The IMF started to do this when it created credit facilities without the Fund s usual (and humiliating) conditionality.

Without strict conditionality, she would risk shifting the domestic consensus in favor of Germany s emerging Euro skeptic mood.

Moreover, the conditionality and close monitoring typically associated with the multilateral institutions make them less attractive sources of financing.

The international community, through the use of conditionality, is providing political incentives for local authorities to arrest those indictees.

That way, the world s poor could at least avoid the heavy handed conditionality imposed by the IMF and World Bank.

Unfortunately, the Fund is not regarded as being impartial, especially by countries that have been seared by its past conditionality.

The problem is that the IMF has bought into the rhetoric of its critics by agreeing to streamline its conditionality.

First, it is strange that Europe has agreed to provide assistance only as a last resort, by unanimity and with harsh conditionality, at a time when the International Monetary Fund has created first resort, near automatic, and low conditionality facilities to help countries hit by sudden capital outflows.

Indeed, East Asian countries may find it difficult to conduct candid surveillance of one another s policies and enforce firm policy conditionality.

Eurobonds, viable in the longer term, are thus premature, because they imply a relaxation of conditionality, thereby weakening incentives to implement reforms.

IMF conditionality for the activation of the majority of their borrowing could make countries reluctant to turn to the CMIM for support.

If aid satisfies basic governance conditionality and is directed at these vital areas, Africa will have a far greater chance of progressing.

However, many speakers expressed concern about recent trends in the future trajectory of and the current distribution, volume, effectiveness and conditionality of aid.

Through what mechanisms can recipient countries bear on donors and development partners to honour commitments and be transparent in terms of possible conditionality?

Participants were also concerned about the issue of conditionality attached to debt cancellation and the impact this would have on the quality of aid.

At the same time, imposing conditionality on this kind of disbursement would enhance legitimacy, as opposed to the current framework, in which beneficiaries seek entitlements.

Given the IMF stigma in Asia, a co financing facility that provides precautionary credit lines without policy conditionality to qualified member countries would be useful.

Conditionality may not be the right word to describe the relationship, because it implies that certain conditions must be met before the Union bestows benefits.

In the ensuing discussion, it was highlighted that conditionality imposed on the countries from the South were too punitive and often led to greater poverty.

It would offer large lines of credit to illiquid countries like Italy, with conditionality intended to help such countries resume borrowing from markets at reasonable cost.

As shown by experience, a regional multilateral approach might ensure that any conditionality associated with the financial assistance provided is consistent from one country to another.

Third, the obvious secretariat is the IMF. Unfortunately, the Fund is not regarded as being impartial, especially by countries that have been seared by its past conditionality.

The Fund, too, began to reduce conditionality, and eventually it began to question the desirability of capital market liberalization, which previously had been central to its agenda.

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