The IMF Independent Evaluation Office has concluded that some IMF programs may be unduly restricting the spending of additional aid. On average, IMF programs target only 27 cents of each additional dollar of aid for higher public spending; the rest is supposed to go to building reserves or paying debt. CGD visiting fellow David Goldsbrough says that the IMF is right to take account of the level of reserves and domestic macro conditions when considering how additional aid should be used, but he says that the IMF should also consider the effect of government spending on growth and social objectives, as well as the likely effectiveness of additional public spending. Read the blog and comment
