Problem
Restrictive conditions on loans through intergovernmental facilities
Experimental visualization of narrower problems
Other Names:
Reduced scope of intergovernmental development assistanceAutocracy of intergovernmental financial institutions
Nature:
The post World War II developmental efforts through the United Nations Organization's Development Programme were based on the premise that the greatly differing developing countries were themselves the best judges of their own development priorities. The last ten years, however, have seen a tendency by some donor governments to either tie their share of multilateral assistance to their own perception of the priorities, or to limit their support in the multilateral context, in favour of increasing bilateral aid and special purpose arrangements.
Incidence:
Access of countries to financial facilities available through intergovernmental bodies, such as the International Monetary Fund, is subject to strict conditionalities, high cost and may only be available for the short term.
Broader Problems:
Restrictive macro-economic policiesOver-dependency on international financial institutions Narrower Problems:
Restrictions imposed on foreign aidInadequate funding of international programmesReallocation of aid funds to alternative prioritiesPolicy cross-conditionality restrictions in multilateral development aidDeteriorating terms of international financial loans to vulnerable countries Related Problems:
Conservative business financingDeterioration of development processShortage of financial resources within the United Nations system of organization Aggravates:
Bilateralism in aidUndeveloped business supportBurden of servicing foreign public debtLack of long-term development assistanceInadequacy of intergovernmental decision-making processUnaccountability of international financial institutionsUncertainty of development programmes due to short-term loansDeteriorating balance between financial assistance and structural adjustment Strategies:
Providing loans for urban developmentProviding low-interest loansProviding loans for communicationsProviding loans to fisheriesFinancing energy efficiencyProviding loans for the environmentProviding loans to the transportation sectorProviding loans to agricultureProviding loans for planning and reformProviding preinvestment loansProviding loans for educationProviding loans to industry/miningProviding loans for tourismProviding loans for export financingProviding loans for national institutional changeFinancing science and technology for developmentProviding loans Subject(s):
Commerce → BankingCommerce → Credit
Development → Assistance
Development → Development
Government → Intergovernmental
Societal Problems → Restrictions
Related UN Sustainable Development Goals:
Problem Type:
E: Emanations of other problems Date of last update
04.10.2020 – 22:48 CEST