The Mutual Conditionality of International Financial Institutions: Iraq's Model After 2003

Abstract

The international financial institutions and their loans and credit facilities to the countries of the South have formed an important center of polarization, while noting the continued escalation of interest and influence in these files by the great powers, and on this basis it was necessary to study the subject scientifically systematically so that we can know the nature of the cross conditionality imposed by international financial institutions on the countries receiving credit facilities, grants and loans, These institutions, through the IMF and the World Bank as a monetary institution, initially adopted a series of economic measures, as the IMF began to advocate the need to adhere to the implementation of economic stabilization policies based on the treatment of fiscal and monetary policies, by carrying out a set of economic packages required by the International Monetary Fund (IMF) to recipient countries of credit facilities and loans to complete the process of economic reform. In the context of what has been called a conditionality rule, the World Bank's policies have been focused on helping to rebuild and develop member states by investing capital in productive investments, encouraging foreign investment, and the World Bank initially focused on project finance, but the remarkable shift in World Bank policies emerged in the 1980s with the outbreak of the debt crisis for the countries of the South. If the World Bank adopts structural adjustment programs, which are a continuation of the IMF's economic stabilization programs, and therefore there is effective cooperation between the IMF and the World Bank, when any country resorts to the International Fund for credit facilities, loans or credit grants, the IMF administration requires that the imf agree to the terms and procedures of the World Bank so that the IMF can grant those loans and credit facilities. The same applies to the World Bank