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The absence of policy conditionalities and the emphasis on capacity building for development contribute to the efforts at enhancing country ownership, although Brazil's exclusive recognition of national governments as cooperation counterparts may at times be seen as a limitation if the beneficiary national governments do not have the capacity to meet the partnership criteria.
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The policy conditionality in the banking sector will be extensive and more intrusive than anticipated.
Alec Mally in Athens asks: Why do the Greeks feel they are above the IMF/Troika policy conditionality required in their bailouts?
China's policy banks hoped to avoid the failings of other creditors in Latin America by circumventing the need for policy conditionality with commercial conditions.
This is most obvious in the pernicious practice of "policy conditionality", where countries have to do what donors say to get their money.
Governments and banks in other countries will then have to be insulated from the conflagration through a combination of bailout money and strong policy conditionality.
Germany and other creditor countries would not accept a haircut, but they would be flexible about repayment terms and about changing policy conditionality.
For starters, it should focus on maintaining appropriate monetary conditions and get out of the business of negotiating policy conditionality with governments.
The EMF would be financed by its weakest members, would be stricter than the IMF in its policy conditionality, and would have a pre-positioned resolution mechanism to address sovereign default.
The latter are generally less interested in policy conditionality and more focused on infrastructure, while the former have a strong tendency to conditionalise aid, while focusing, at least in the MDG era, on social sectors.
We also find, however, that policy conditionality and possible institutional design mechanisms against free-riding by other states (which make the policy "less unilateral" by providing for reciprocation) play no significant role when citizens form their preferences with respect to climate policy.
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CEO of Professional Science Editing for Scientists @ prosciediting.com