The success of any programmes
To evaluate the success of any programmes, considerations have to be given to variables that are qualitative and those that are quantitative in nature. Qualitative evaluation will address the issues of how well the programmes may have served the set goals and objectives. Within this context, in checking the success of the programmes, one has to consider the predetermined objectives and evaluate the success of the policies based on the extent of the success of the policies. The evaluation can also be done on the basis of how much has been achieved through the review of the figures vis-a-vis the target figures (Trudel, R., p 936).
This quantitative analysis is capable of indication the effectiveness of the implementation process. In quantitatively evaluating the success of the international monetary fund this paper will look at the gradual increase in the disbursement and the effect of the loans on the GDP of the recipient countries. The relationship between Poland and the international monetary fund have all the relevance to transitional economies, particularly those undergoing restructuring and stabilisation programmes (Cooper, R N. , p 138). Equally, the case of Poland represents the benefits that recipient country of IMF funds would enjoy.
The IMF was more receptive given Poland’s economic state. Poland’s outstanding success in its relation with the IMF was evidenced in the successful negotiation of debt forgiveness and subsequent acquisition of the $1billion loan. The polish government equally reduced the debt consistently. The London Club and Paris Club had reduced the Polish debt from 30% and 50% respectively (Microfinance Network). This was largely influenced by the successes the government was reaping from its investment resultant from the IMF. The debts did in no way threaten the viability of any recessionary policies.
However the Polish case seems relatively exceptional assisting the economy to move from recession to a sustained reduction in the rates of inflation and an inflow of foreign investment. It is appreciable that Poland most of the time triumphed over the IMF during negotiations, in the long run the Polish government was able to access much loan without stringent criteria. The Polish (Bullard, N. , Bello, W. , Mallhotra, K. p 525) government had, through Balcerowicz, developed a stabilisation model reminiscent to that of the International Monetary fund. This eased the IMF-Polish negotiation strains.
Poland has enjoyed much leverage from western debt relief measures, hence providing further financing for the polish government for transitional purposes. In appreciating the milestones in the Polish economy, it needs to be appreciated that not all beneficiaries of bilateral aid should expect to be relieved off the external debts. In this way, the merits the Polish economy accrues from the bilateral agreements should be treated as exclusive. While it is also notable that the Polish economy could have also reaped much from the euphoria of the collapse of the Soviet Union, the symbolic position held by the Polish economy then was so novel.
The impact of any policy has to catapult the efforts of any state towards prosperity. The evaluation of the success of the policies would be established through a quantitative process or a quantitative process. Equally, the successes of the international monetary fund in Poland will be ascertained through the qualitative and quantitative review of the impact of the fund on the Polish economy. The polish economy with a population of an estimated 38 million people has had a stable growth over the years. Since its joining of the European Union, the polish economy has remained very healthy. Poland joined the European Union in 2004.
Thereafter, the polish economy has witnessed a steady growth trend, 6. 7% in 2007 and 4. 8% in 2008. The projected economic growth for the country over the coming years has been projected at an increase of between 0. 3 to 1. 9% (Bird, G. , Rowland, D. , p 864). To a reasonable extend the IMF has been able to meet its stipulated objectives. Though it can be attested that it has been an institution with mixed fortunes, it qualitative and quantitative evaluation of performance over time proves that its performance has relatively served the objectives, particularly in the 1980s and the 1990s.
The economy of Poland (Dreher, A. , p 286) was experienced deterioration for a period of time. This was a result of recession that had been precipitated by the economy’s transformation from a controlled economy to a free market economy. The government had concentrated its efforts towards the curbing of social security expenses that had earlier required increase in the subsidy from the general revenues. The trimming of the expenditure was achieved within a short period of time; thanks to the conditions by the International Monetary Fund
The cutting of the expenditure had been a condition of the International Monetary Fund and had been put on the Polish government in the wake of a loan it had received from the IMF. Within the same period the International Monetary Fund had demanded that most of the public utilities be privatised. In its reform process, the polish government set ceiling for the earning levels. This criterion was to be equally used in the determination of the pension of the workers. Besides, the same period witnessed a stream of retrenchments (Best, J. , p 267).
This retrenchment was faced by stiff competition from the Trade Unionists. The unionists went to court over the issues. Subsequent, pensioners were awarded shares in the privatised companied by the government rather that the payment in cash of their pension. The IMF has shortly suspended funding to the polish government and the government was forced have the social security fund cut down so that the IMF would revert to the lending (Chaudhry, P K. , Kelkar, V L. , Yadav, V. , p 67). To have the trust of the International Monetary Fund the government was expected to have the social security cut down.
The internationals monetary fund was to in turn reassure the investors of the feasibility of their investment in Poland. The polish government instituted a few measures towards the attainment of the objectives. Most importantly, it introduced cutbacks on the unemployment benefits, expenditure on cash benefits. Earlier, these costs had seen the expenditure increase from 11. 17% of the Gross Domestic Product to 15. 3% of the Gross Domestic Product (Microfinance Network). This was attributed to the increased pension benefits relative to the average wages.
This seemed to reverse the trend experienced in the 1980’w in total. The programmes of the IMF have been very particularly relevant to the Polish government. The structural adjustment programmes saw the government of Poland review its management policies that saw the economy pick up. Through the structural adjustment programmes, the adjustment programmes saw the government improve the delivery of services to its citizens through the firms that were privatised (Trudel, R. , p 930). Though layoffs were a common scenario, the overall delivery of services to the public was catapulted through the adjustment programmes.
The conditionality placed on the on the aid and loans saw the improvement in the overall governance of Poland. The fund also increased international cooperation and financial surveillance through the monitoring of the central bank functioning and the linking of the banks. Overall this seemed to enhance international integration that is incidental in political, social and cultural development. Because of the sound macroeconomic policies that were initiated by the International Monetary Fund, the Polish economy has remained robust and is among the only countries in Europe that were not hard hit by the global economic crisis.
The Polish government has been able to avoid recession because of the well developed institutions that were founded in the 1980’s. Most important to be noted is that Poland is the only economy in Europe that managed to have some economic growth in 2009. This has been attributed to the good policies and sound management of its institutions. The international monetary fund’s credit has been seen as playing a central role in the stability of Poland. Poland had been awarded a grant of $20. 8 billions which was very instrumentals in its maintenance of the zloty’s stability (Bird, G.
, Rowland, D. , p 846). The sound relationship between Poland and the Bretton Woods institution has been able to put Poland on the right economic track over the years. In attaining the central objective of cushioning the country against any shocks, the economy of Poland sought to get a loan from the IMF (Heritage Foundation 2005, p 76). The loan was to increase the polish central bank’s reserve by an estimated one third. This was done through Free Credit Line from the International Monetary Fund.
This was intended towards cushioning the Polish government against any attacks from speculators and the probable virus from the crisis. Relatively, the Polish economy was doing very well compared to the other ex-communist state. The ex-communist states such as Latvia, Hungary and Romania were getting economically devastated over the time. Though this economies had received funding from either both IMF and/or the World Bank. While Poland has over the years been reluctant seeking extra funding because it suffered from capital evaporation that had been precipitated by the credit crunch.Sample Essay of Paperial.com