Globalization and Conditionality: Two Sides of the Sovereignty Coin
Author(s)
Tsai, Mary C.
Abstract
From the ruins of World War II, the international community created the International Monetary Fund and World Bank, acknowledging the growing interdependence of international economic markets. In recent years, the globalization of international financial markets has been accelerating rapidly, resulting in the potential for massive capital withdrawals from a country’s financial markets and infrastructure. In an attempt to battle this contagion, IMF and World Bank financing have been conditioned on promises by the recipients to change their domestic economic policies. This note explores the implications of globalization and conditionality on state sovereignty through the prism of the Asian financial crisis.
