ABSTRACT
The debt crisis has induced Latin American countries to carry out a long and expensive adjustment process. In order to reconcile the problem of foreign indebtedness with the Latin American countries' economic growth, adoption of the strategy of "adjustment with growth" has been suggested. As both the International Monetary Fund (IMF) and the World Bank will play an important part in this strategy, a review of the conditionality of both institutions is required. The "adjustment with growth" strategy will soon result in a double conditionality from the IMF and the World Bank. In Bretton Woods, the roles of the IMF and the World Bank were defined as follows: The IMF's main concern was the short-term adjustment of a country having an external disequilibrium. The IMF focuses mainly on macroeconomic matters, and its goals are to stabilize the balance of payments and to control inflation.
