NTERNATIONAL MONETARY FUND’S (IMF) EXPANDING STRUCTURAL CONDITIONALITY AT WORK: THE TURKISH CASE IN 2001

Abstract

The main argument in this paper is that International Monetary Fund (IMF) conditionality has evolved towards encompassing structural elements particularly since mid-1990s and Strengthening the Turkish Economy: Türkiye’s Transition Program, implemented following the 2001 crisis in Türkiye is a good illustration of the latter.  The structural conditionality dimension of ongoing IMF programs are consisted of issues going beyond traditional aggregate demand management and deal with regulatory and institutional features of the market economy.  When the Turkish program and the subsequent Letter of Intent in 2001 are examined, it is figured out that many of these elements are present in the latter and thus reflect the expanding trend of IMF structural conditionality in Fund supported programs.