More policy freedom or belt-tightening?

Rather than “graduating” from the much-criticized economic reform programmes promoted by the International Monetary Fund (IMF), a number of African countries are opting to sign on to an extended version. The Fund describes its new Policy Support Instrument (PSI), introduced in 2005, as a “non-financial mechanism.” Unlike other IMF programmes, it does not come with any direct financing from the Fund. Instead countries receive IMF advice, monitoring and endorsement of their policies. So far six countries, all of them African, have signed on to the instrument, and more are considering doing so.