In order to understand fully theconditionalities, it is important to know that they are divided into fourtypes, each type consists on specific conditionalities that the World Bank putsto make sure that the countries that request loans are in fact going to use themoney in a good purpose.
– Fiduciary conditionality: this type consists on verifying that the financegiven is used for the goals specified;- Process conditionalities: Which is the management of funds, in other terms,making sure that if the procedures are well followed or not, by makingprocesses to manage that.- Outcome conditionality: By measuring the GDP (Gross Domestic Product) growthor poverty reduction, those indicators can give a lot about the situation ofall the countries of the world.- Policy conditionality or economic policyconditionality: This typeconsists on putting policies that help achieving the goals and objectivesintended. The application of these conditionalitiescan be tricky, and that is why, there are principles that need to be respectedto have a good practice and flexibility.
The first principle is ownership, it means that the country’sgovernments have the right to express its policy intentions and rely on it. Thesecond one is harmonization whichimportant in order to have a coherent framework for measuring progress andknowing where the process is going and what are the steps to do next. The thirdprinciple is customization, ascomplicated as it sounds, it only means that the frameworks used should neverbe used to control by anyhow the government’s agenda. The fourth principle is criticality in a way that staff shouldchoose only actions critical or helpful for the goal achievement process, so wecan realize actions in an efficient way and concretize optimization.
And finally, transparency. In any process,transparency is fundamental to have justice and clear actions.