Criticisms and suggestions on the cross-conditionality of the IMF and the World Bank

In order to make the problem of external debt compatible with that of the economic growth of Latin American countries, the adoption of a “growthoriented adjustment” strategy has been suggested. Since both the International Monetary Fund and the World Bank are called upon to play an important role in this strategy, there is a need to review and co-ordinate the conditionalities imposed by both institutions. This need is related to the fact that the current deficits in the balance of payments of the Latin American countries are structural, and therefore must be dealt with in the long term; on the other hand, it has been proven repeatedly that short-term macroeconomic adjustment affects the pattern of long-term growth.