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:
“We praise times past, while we times present use;
Yet due the worship which to each we give.”
—Ovid (Publius Ovidius Naso)
“If I thought that I could speak with discrimination and impartiality of the nations of Christendom, I should praise them, but it tasks me too much. They seem to be the most civil and humane, but I may be mistaken.”
—Henry David Thoreau (1817–1862)
“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)