How the IMF lives with its conditionality

Abstract

In spite of the intense controversy associated with the conditionality of its lending, IMF decisions are not voted upon but are the “sense of the meeting” of the Executive Directors as declared by the Managing Director. This unusual decisionmaking process is a substitute for secrecy of voting, which is not feasible within the IMF. It permits the wealthier countries to impose adjustment conditions without the appearance of the continual exercise of their majority power in the IMF. It permits the poorer, developing countries to agree or to disagree without taking an explicit position or to disagree with less danger to the favorable consideration of any future request which might be made.