Edited by Julio Faundez and Celine Tan
Chapter 6: The New Disciplinary Framework: Conditionality, New Aid Architecture and Global Economic Governance
* Celine Tan** INTRODUCTION 1. ‘Country ownership’, ‘partnership’ and ‘participation’ are key pillars of what has become increasingly referred to as the ‘new aid architecture’. This prioritisation of ‘country-owned’ development strategies in the negotiations for development financing – including engendering a broad-based participatory policymaking process – signifies part of a wider conceptual shift in development policy and practice that has been taking place since the late 1990s. Catalysed primarily by the inception of the Poverty Reduction Strategy Paper (PRSP) framework, introduced in 1999 as preconditions for debt relief under the enhanced Heavily Indebted Poor Countries (HIPC) initiative and for concessional financing from the World Bank and the International Monetary Fund (IMF), this new blueprint for official development assistance (ODA) claims to move away from the prescriptive legacy of conditionality which has traditionally characterised the relationship between parties to such financing. In this respect, the principles underpinning the new aid architecture1 are regarded as the opposite of the doctrine of ‘conditionality’, operating as a conceptually and operationally divergent framework for regulat- * This chapter is drawn from the author’s book, Governance through Development: Poverty Reduction Strategies, International Law and the Disciplining of Third World States (2010), London: Routledge. ** Lecturer in Law, Birmingham Law School, University of Birmingham, Birmingham, UK. 1 The term ‘aid architecture’ is conventionally understood as ‘the set of rules and institutions governing aid flows to developing countries’ (IDA, 2007: para. 3). The terms ‘aid’, ‘official development assistance’ (ODA) and ‘development financing’ will be used interchangeably in this chapter to refer to grants...
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