IMF conditionality is not so bad and can actually help African economies develop, African finance ministers argued yesterday. The relationship between the Fund and African governments was more equitable than is often assumed, they told a press briefing.
David Mwiraria, Finance Minister of Kenya, said: 'There has been a misunderstanding that conditionality is imposed. To the contrary: we prepare our strategic plan, show it to the IMF and say how we want to implement it. The Fund usually asks for a specific time frame and sets targets, which is helpful.'
His comments were echoed by his Zambian colleague Ngandu Magande, who stated emphatically that IMF assistance has helped place his country on track to economic development.
'We have had conditionality, yes. But I feel comfortable that when the IMF official comes to Zambia, he does not have a prepared agreement for me to sign in his pocket,' he said. 'We sit down together and discuss. The program since 2001 has had a lot of Zambian input.'
The minister was clearly encouraged by this year's debt relief initiatives. 'Sixty-four per cent of my debt will be written off, and I will apply the savings to health and education. If the HIPC initiative comes through by July, Zambia's external debt will fall by 98%.'
Magande added that Zambia's long-term strategy was to look for an exit strategy from the IMF. 'I would like to come here in 20 years if I am still around Ðand say that Zambia is no longer borrowing from the Fund. For that we have to put in place investments now.'
But Nigeria's finance minister Ali Lamine Zene raised the concern that conditionality prevented countries seeking other sources of funding. 'We are confined to a financial ghetto where we cannot access various funds to finance our development.' IMF programmes often only allow countries to accepts loans with a significant grant proportion.