The Research On The Impacts Of IMF Conditionality On The Socio-economic Rights To The Recipient Country

The International Monetary Fund has contributed to maintain the international financial system and balance the economic development of member countries since its establishment. However, its rescues to member countries during the financial crisis were barely satisfactory in recent decades. Although the invariable currency devaluation, export promotion and austerity programs redeveloped the economy to some extent, their adverse impacts on human rights, especially the socio-economic rights are worrying. Not only did people there suffer high unemployment rate, lower level of labour treatment and social security from the economic crisis, they also were faced with socio-economic rights impaired, which to some extent stem from the severe conditionality.Conditionality consists of a series of substantial and procedure contents, which has been criticized to violate the recipient countries’ economic sovereignty, impact their people’s socio-economic rights and be the utility of the developed countries to control the developing ones. Whereas in order to get the loan back on time, it is necessary to set up conditionality. In recent years, the Fund took steps to reform its loan system and conditionality, albeit all the measures did not change the predominance of developed countries.With historical analysis and case study, the paper tries to indicate the drawbacks of conditionality and its contradiction to socio-economic rights of the recipient countries. Basically, the contradiction between conditionality and socio-economic rights could not be removed, but if an efficient supervision mechanism is set up, the procedure of conditionality is optimized and the unfair elements are remitted, the ‘Nash Equilibrium’ can come true, which is also the reform direction that China should boost.