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:
“The LORD is my strength and my might, and he has become my salvation; this is my God, and I will praise him, my father’s God, and I will exalt him.”
—Bible: Hebrew, Exodus 15:2.
“We praise times past, while we times present use;
Yet due the worship which to each we give.”
—Ovid (Publius Ovidius Naso)
“For just as poets love their own works, and fathers their own children, in the same way those who have created a fortune value their money, not merely for its uses, like other persons, but because it is their own production. This makes them moreover disagreeable companions, because they will praise nothing but riches.”
—Plato (c. 427–347 B.C.)