Praise
In principle, conditionality is a tactic used not only to make sure loans are paid back, but also to ensure that they are used effectively. If there are no conditions on the loan, the country might not use the money to reduce poverty (see fungibility). This argument however, logically misses the counter-argument that there are many other conditionalities which could be imposed which would not necessarily create the burden of payment (and therefore, the subsequent lack of ongoing governmental investment) which is seen by many critics as creating a vicious circle. A corollary of this problem is that, should such a vicious circle indeed exist, its only overriding tendency is to allow for outside multinational investment to provide the service and food needs to the society, which can no longer function in a productive, cost effective manner.
Read more about this topic: Structural Adjustment
Famous quotes containing the word praise:
“Of the best rulers The people only know that they exist; The next best they love and praise The next they fear; And the next they revile. When they do not command the people’s faith, Some will lose faith in them, And then they resort to oaths! But of the best when their task is accomplished, their work done, The people all remark, “We have done it ourselves.””
—Lao-Tzu (6th century B.C.)
“To praise princes for virtues which they have not, is to insult them with impunity.”
—François, Duc De La Rochefoucauld (1613–1680)
“I allow a Beauty to be as much to be commended for the Elegance of her Dress, as a Wit for that of his Language; yet if she has stolen the Colour of her Ribbands from another, or had Advice about her Trimmings, I shall not allow her the Praise of Dress, any more than I would call a Plagiary an Author.”
—Richard Steele (1672–1729)