ABSTRACT

At this point, the case against conditionality can proceed in several different directions. One set of arguments is that, whatever the technical case for imposing conditions, it is morally illegitimate for donors to use their economic strength to inf luence the choices of sovereign nations. This argument has more force than economists typically allow, but the importance of sovereignty needs to be carefully weighed. Since relatively few recipient countries are stable, effective democracies, a distinction can be made between the sovereignty and interests of recipient governments, and the interests of their populations. In principle, if conditions on aid help to improve the effectiveness of a recipient government, or its responsiveness to the domestic population, it might be a mistake to give the loss of sovereignty too much weight.