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It was "tragically comic" that India and Pakistan, after "bleeding their economies" to pay for arms, "beg and submit to all sorts of conditionalities from international lending institutions".
Several of the OECD programs use this type of conditionalities on employers (see Banerji and Robalino 2009).
The evidence suggests an adverse effect on labor supply, particularly motivated by the lack of conditionalities and the magnitude of the benefits.
When wage subsidies are designed with these objectives in mind, there are important implications in terms of eligibility and targeting, how the subsidy is set, its duration, and the types of conditionalities on employers and beneficiaries.
Regarding implementation, the focus is on institutional arrangements to manage the scheme; the types of conditionalities to pay benefits that need to be considered and enforcement mechanisms; and mechanisms to contract and pay providers of services.
To avoid this scenario, an alternative might be to outsource the provision of services and enforcement of conditionalities, for example, by making use of a network of community caseworkers Almeida et al. (2012).
Similar(51)
Forget "light" forms of conditionality.
But it was the wrong sort of conditionality.
How many times have you heard politicians wrap themselves in that cloak of conditionality?
Again, a mixture of conditionality and in-work support is needed to make reform effective.
If politics in the periphery turns sour, that sort of conditionality could prove impossible to enforce.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com