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:
“A heap of epithets is poor praise: the praise lies in the facts, and in the way of telling them.”
—Jean De La Bruyère (1645–1696)
“Come praise Colonus’ horses, and come praise
The wine-dark of the wood’s intricacies,
The nightingale that deafens daylight there,
If daylight ever visit where,
Unvisited by tempest or by sun....”
—William Butler Yeats (1865–1939)
“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)