chapter  5
The inverse sovereignty effect
ByJohn Overton, Warwick E. Murray, Gerard Prinsen, Avataeao Junior Ulu, Nicola (Nicki) Wrighton
Pages 50

This chapter reviews the issue of the 'new aid conditionalities' that have accompanied the implementation of the neostructural aid regime. It suggests that there are process conditionalities, to do with the way recipient governments are required to put in place certain policy documents and management systems that conform to donor requirements. The chapter considers political conditionalities that focus on issues of human rights, democracy and public consultation that donors also require of recipients. At the high strategic level, new conditions were largely encapsulated in the requirement that recipient states develop Poverty Reduction Strategy Papers (PRSPs). PRSPs were instituted in the mid to late 1990s by institutions such as the World Bank to replace the unpopular Structural Adjustment Programmes (SAPs). The Employment Law Reform was instigated by the Government of Vanuatu in 2008 to enact domestic law changes in compliance with international labour laws.