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:
“Few people have the wisdom to prefer the criticism that would do them good, to the praise that deceives them.”
—François, Duc De La Rochefoucauld (1613–1680)
“Behind every individual closes organization; before him opens liberty,—the Better, the Best. The first and worse races are dead. The second and imperfect races are dying out, or remain for the maturing of the higher. In the latest race, in man, every generosity, every new perception, the love and praise he extorts from his fellows, are certificates of advance out of fate into freedom.”
—Ralph Waldo Emerson (1803–1882)
“Why level downward to our dullest perception always, and praise that as common sense? The commonest sense is the sense of men asleep, which they express by snoring.”
—Henry David Thoreau (1817–1862)