Recent years have seen IMF lending focusing almost exclusively on the developing world as richer countries have turned to more flexible sources of finance. This provides the first analysis of Fund lending and key changes needed for future success.

As the linchpin of the global financial system, the International Monetary Fund provides the balance of payments support, chiefly to developing countries, conditional on strict remedial policy measures. Its approach to policy remains highly controversial, however. While the Fund claims it has adapted, critics allege its policies are harshly doctrinaire, imposing hardships on already poverty-stricken people. For the critics, the half century of its existence is `fifty years too long' and radical change is essential. This book examines the arguments, tracing the extent of Fund adaption, presenting major new evidence on the consequences of fund programes, and considering its future role.

`This book, the product of a research project under the auspices of the Overseas Development Inst of London, provides a detailed theoretical and empirical analysis of IMF lending policies, and concludes that fundamental changes in IMF lending strategy and, indeed, in its philosophical orientation, are required to improve the efficiency and equity of IMF lending,' I Jrnl of Technical Cooperation