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The Fund continued assisting nations experiencing balance of payments deficits and currency crises, but began imposing conditionality on its funding that required countries to adopt policies aimed at reducing deficits through spending cuts and tax increases, reducing protective trade barriers, and contractionary monetary policy.
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"This arrangement could be seen as an unwarranted abuse of Fund seniority that, in addition, unfairly frees the ECB from the need to impose its own conditionality on one of its members".
But, one wonders, how can Washington enforce conditionality on a sovereign state?
Conditionality works.It does appear that Mr Tadic may have finally seized on the fact that EU conditionality on war crimes can work for him domestically - one many of us have pressed Serbian governments to adopt since the fall of Milosevic in 2000, but never consistently embraced.
The U.S. has used this influence to further its long-term foreign policy objectives and short-term political and economic goals by imposing conditionality on replenishment negotiations.
One positive impact could result from imposing some kind of conditionality on the distribution of aid.
"There would be some conditionality on the sale of Aegis," said another senior official involved in the decision.
If Europe could impose such "conditionality" on Turkey, why could America not do something similar with Egypt?This is a policy book.
It will also be virtually impossible for the ECB to impose effective conditionality on debtor countries, meaning that the ECB can only hope that a series of unpredictable political decisions in member states will go in its favour.
But imposing conditionality on sovereign states is a delicate matter – especially when the countries involved are as large, proud, and diverse as the Brics.
It is necessary to decide on priorities, and to focus conditionality on measures that are critical to the macroeconomic objectives of recipient-country programmes, leaving those countries some scope to make policy choices for themselves.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com