How does cross conditionality work with IMF and World Bank?

So, I’m still a little unclear on what cross conditionality is essentially supposed to be. Is it just IMF’s stipulations before a country can borrow from the World Bank? Is there a good example of cross conditionality?

Thanks!

Cross conditionality is another way of asking the participating country to meet a condition fr both organization. It has happened that an IMF stipulation is at odds with a condition set out by the World Bank. Lets take management of inflation. Or the money supply. The IMF might ask that inflation be reduced to 10% and the World Bank may want to open the flood gates to credit. These 2 conditions may be at odds with each other. So then the solution is to work more collaboratively and try to synergize the conditions.

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February 16 2010 03:31 pm | Cross

One Response to “How does cross conditionality work with IMF and World Bank?”

  1. Ivan G on 16 Feb 2010 at 9:06 pm #

    Cross conditionality is another way of asking the participating country to meet a condition fr both organization. It has happened that an IMF stipulation is at odds with a condition set out by the World Bank. Lets take management of inflation. Or the money supply. The IMF might ask that inflation be reduced to 10% and the World Bank may want to open the flood gates to credit. These 2 conditions may be at odds with each other. So then the solution is to work more collaboratively and try to synergize the conditions.
    References :

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