This book investigates this device in improving economic policies, based on a study of 21 developing countries, and regional studies of South-East Asia and Latin America. Key conclusions include: Implementation of policy conditions is poor when donor and government objectives differ; The incentives offered by donors are inadequate to ensure implementation of conditions; There are deep-rooted obstacles to making conditionality more effective; A new model of donor-recipient relationships is urged, based on principles of ownership, selectivity, support and dialogue.221pp