The political economy of labor market deregulation during IMF interventions

This study examines the relationship between policy interventions by the International Monetary Fund (IMF) and de jure labor rights. Combining two novel data sets with unprecedented country-year coverage – leximetric data on labor laws and disaggregated data on IMF conditionality – our analysis of up to 70 developing countries from 1980 to 2014 demonstrates that IMF-mandated labor market policy measures significantly reduce both individual and collective labor rights. Once we control for the effect of labor market policy measures, however, we find that collective labor rights increase in the wake of IMF programs. We argue that this result is explained by the impact of union pressure on governments which, in such a context, are imbued with the policy space to respond to domestic interest groups. The study has broader theoretical implications as to when international organizations are effective in constraining governments’ choices

The International Monetary Fund's interventions in food and agriculture:An analysis of loans and conditions

The mandate and competence of the International Monetary Fund (IMF) does not cover food and agriculture policies. While there is anecdotal evidence that the IMF engages in these policies regardless, the state-of-the-art lacks a systematic empirical foundation to identify the extent of its mission creep into these sectors. Based on a combination of machine and human coding, we present a comprehensive database on the IMF’s policy interventions in food and agriculture. Using new data on ‘conditionalities’—policies that governments must implement to access IMF credit—we assess to what extent the IMF has targeted these sectors for the period 1980 to 2014. Our analysis evaluates the agricultural content and ideological orientation of conditions according to whether they promote a developmental state, a night-watchman state, or neither. We find about 2% of all IMF conditions (1105 of 58,406) directly target food and agriculture issues. These are present in 43% of all IMF programs (332 of 781); and affect 100 countries (of the 131 countries that have had an IMF agreement). In addition, our analysis reveals that 59.2% of these conditions embody policy measures in line with night-watchman state policy preferences, 40.1% are model-neutral, and 0.7% developmental. Within the model-neutral category, 23.9% are conditions oriented towards building state capacity; 2.7% have a poverty reduction content; and 2.9% contain pro-environment policies. The IMF’s primary reason for targeting food and agriculture is to enforce fiscal discipline by removing subsidies, yet our analysis identifies that only 8% of these policies abolish subsidies. A more consistent explanation of the IMF’s interest in food and agriculture is its broader mission creep into development policy, and its deep-rooted pro-market ideology

How structural adjustment programs affect inequality:A disaggregated analysis of IMF conditionality, 1980-2014

This article highlights an important yet insufficiently understood international-level determinant of inequality in the developing world: structural adjustment programs by the International Monetary Fund (IMF). Studying a panel of 135 countries for the period 1980 to 2014, we examine income inequality using multivariate regression analysis corrected for non-random selection into both IMF programs and associated policy reforms (known as ‘conditionality’). We find that, overall, policy reforms mandated by the IMF increase income inequality in borrowing countries. We also test specific pathways linking IMF programs to inequality by disaggregating conditionality by issue area. Our analyses indicate adverse distributional consequences for four policy areas: fiscal policy reforms that restrain government expenditure, external sector reforms stipulating trade and capital account liberalization, financial sector reforms entailing inflation-control measures, and reforms that restrict external debt. These effects occur one year after the incidence of an IMF program, and persist in the medium term. Taken together, our findings suggest that the IMF’s recent attention to inequality neglects the multiple ways through which the organization’s own policy advice has contributed to inequality in the developing world

Spreading the Washington Consensus into Food and Agriculture Sectors: The Case of the International Monetary Fund

The mandate and competence of the International Monetary Fund (IMF) do not cover food and agriculture policies. Yet, signs indicate that IMF enages in these policies. Scholars lack a systematic empirical foundation to monitor the extent and impact of IMF’s operations on these sectors. Based on a combination of machine and human coding, we present a comprehensive database on IMF’s policy interventions in food and agriculture. Using new data on IMF conditionality between 1980 and 2014, we assess to what extent the IMF targets these sectors through its ‘conditionalities’—policies that governments need to implement to access IMF credit. The analysis evaluates the agricultural content and ideological orientation of each condition according to whether it promotes a developmental state, a night-watchman state, or neither. The analysis identifies that about 2% of all IMF conditions (1,105 of 58,406) directly target food and agriculture issues. These conditions are available in 43% of all IMF programs (332 of 781). They affect 100 countries of all the 131 countries in which the IMF had any agreements since the 1980s. In addition, the analysis reveals that 59.2% of these conditions embody policy measures in line with a night-watchman state, 40.1% are model-neutral, and 0.7% are developmental. Within the model-neutral category, 23.9% are conditions oriented towards building state capacity; 2.7% have a poverty reduction content; and 2.9% contain pro- environmental policies. The article discusses potential mechanisms driving the IMF to intervene into agriculture and theorizes about possible effects of these conditions on people’s livelihoods

Small donors in world politics: The role of trust funds in the foreign aid policies of Central and Eastern European donors

The Central and Eastern European (CEE) EU member states have emerged as new donors of international development assistance since the turn of the millennium. The literature has tended to focus on the bilateral components of these policies, and neglected CEE multilateral aid. This paper contributes to filling this gap by examining how and why CEE donors contribute to trust funds operated by multilateral donors. The aim of the paper is twofold: First, it provides a descriptive account of how CEE countries use trust funds in the allocation of their foreign aid. Second, it explains this allocation using data from qualitative interviews with CEE officials. CEE countries make much less use of trust funds than might be expected. This is due not only to the loss of visibility and control over their resources, but also to how CEE companies and non-governmental organisations (NGOs) rarely achieve funding successes at multilateral organisations

Confinement effects on glass forming liquids probed by DMA

Many molecular glass forming liquids show a shift of the glass transition T-g to lower temperatures when the liquid is confined into mesoporous host matrices. Two contrary explanations for this effect are given in literature: First, confinement induced acceleration of the dynamics of the molecules leads to an effective downshift of T-g increasing with decreasing pore size. Second, due to thermal mismatch between the liquid and the surrounding host matrix, negative pressure develops inside the pores with decreasing temperature, which also shifts T-g to lower temperatures. Here we present dynamic mechanical analysis measurements of the glass forming liquid salol in Vycor and Gelsil with pore sizes of d=2.6, 5.0 and 7.5 nm. The dynamic complex elastic susceptibility data can be consistently described with the assumption of two relaxation processes inside the pores: A surface induced slowed down relaxation due to interaction with rough pore interfaces and a second relaxation within the core of the pores. This core relaxation time is reduced with decreasing pore size d, leading to a downshift of T-g proportional to 1/d in perfect agreement with recent differential scanning calorimetry (DSC) measurements. Thermal expansion measurements of empty and salol filled mesoporous samples revealed that the contribution of negative pressure to the downshift of T-g is small (<30%) and the main effect is due to the suppression of dynamically correlated regions of size xi when the pore size xi approaches

The nature of slow dynamics in a minimal model of frustration-limited domains

We present simulation results for the dynamics of a schematic model based on the frustration-limited domain picture of glass-forming liquids. These results are compared with approximate theoretical predictions analogous to those commonly used for supercooled liquid dynamics. Although model relaxation times increase by several orders of magnitude in a non-Arrhenius manner as a microphase separation transition is approached, the slow relaxation is in many ways dissimilar to that of a liquid. In particular, structural relaxation is nearly exponential in time at each wave vector, indicating that the mode coupling effects dominating liquid relaxation are comparatively weak within this model. Relaxation properties of the model are instead well reproduced by the simplest dynamical extension of a static Hartree approximation. This approach is qualitatively accurate even for temperatures at which the mode coupling approximation predicts loss of ergodicity. These results suggest that the thermodynamically disordered phase of such a minimal model poorly caricatures the slow dynamics of a liquid near its glass transition

Conformational and Structural Relaxations of Poly(ethylene oxide) and Poly(propylene oxide) Melts: Molecular Dynamics Study of Spatial Heterogeneity, Cooperativity, and Correlated Forward-Backward Motion

Performing molecular dynamics simulations for all-atom models, we characterize the conformational and structural relaxations of poly(ethylene oxide) and poly(propylene oxide) melts. The temperature dependence of these relaxation processes deviates from an Arrhenius law for both polymers. We demonstrate that mode-coupling theory captures some aspects of the glassy slowdown, but it does not enable a complete explanation of the dynamical behavior. When the temperature is decreased, spatially heterogeneous and cooperative translational dynamics are found to become more important for the structural relaxation. Moreover, the transitions between the conformational states cease to obey Poisson statistics. In particular, we show that, at sufficiently low temperatures, correlated forward-backward motion is an important aspect of the conformational relaxation, leading to strongly nonexponential distributions for the waiting times of the dihedrals in the various conformational statesComment: 13 pages, 13 figure

Bad governance:How privatization increases corruption in the developing world

International organizations have become key actors in the fight against corruption. Among these organizations, the International Monetary Fund (IMF) maintains a powerful position over borrowing countries in its ability to mandate far‐ranging policy reforms – so‐called “conditionalities” – in exchange for access to financial assistance. While IMF pressure can force the implementation of anti‐corruption policies, potentially reducing corruption, other IMF policy measures, such as the privatization of state‐owned enterprises, can create rent‐extraction opportunities and limit the capacity of state institutions to limit corrupt behavior. To test these mechanisms, we conduct instrumental‐variable regression analysis using an original dataset on IMF conditionality for up to 141 developing countries from 1982 to 2014. We find that conditions to privatize state‐owned enterprises exert significant detrimental effects on corruption control. Conversely, other areas of IMF intervention are not consistently related to corruption abatement. These findings offer policy lessons regarding the design of conditionality, which should avoid large‐scale privatization, especially under conditions of weak accountability

Glass transition with decreasing correlation length during cooling of Fe50Co50 superlattice and strong liquids

The glass transition GT is usually thought of as a structural arrest that occurs during the cooling of a liquid, or sometimes a plastic crystal, trapping a metastable state of the system before it can recrystallize to stabler forms1. This phenomenon occurs in liquids of all classes, most recently in bulk metallic glassformers2. Much theoretical interest has been generated by the dynamical heterogeneity observed in cooling of fragile liquids3, 4, and many have suggested that the slow-down is caused by a related increasing correlation length 5-9. Here we report both kinetics and thermodynamics of arrest in a system that disorders while in its ground state, exhibits a large !Cp on arrest (!Cp = Cp,mobile - Cp,arrested), yet clearly is characterized by a correlation length that is decreasing as GT is approached from above. We show that GT kinetics in our system, the disordering superlattice Fe50Co50, satisfy the kinetic criterion for ideally 'strong' glassformers10, and since !Cp behavior through Tg also correlates10, we propose that very strong liquidsand very fragile liquids exist on opposite flanks of an order-disorder transition - one that is already known for model systems