Tito Cordella, Andrew Powell, 02 September 2019

Countries almost always repay loans from the IMF and the World Bank before others, even though this preferred treatment rarely appears in legal contracts. This column presents a framework to investigate this puzzle. It argues that the ability to restrict lending allows international financial institutions to lend at the risk-free rate and creates incentives for repayment. IMF and World Bank loans are thus complementary to commercial lending.

Daniel Bradlow, 06 September 2011

Many economists have called on the IMF to reform, particularly in light of the shifting centre of gravity in the global economy towards emerging markets. This column argues that global financial governance, which includes the role of the IMF, should be based on five principles: A holistic vision of development, comprehensive coverage, respect for applicable international law, coordinated specialisation, and good administrative practice.

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