Conditionality is the principle that a country must meet certain criteria (usually economic or political reform) to gain access to loans, debt rescheduling, debt reduction and, in some cases, aid.
Conditionality is criticized by some for reducing the sovereignty of a borrowing country. Others see it as a mechanism for guaranteeing pro-poor policies (e.g. PRSPs), democratic reform and reducing corruption. Two such examples include:
- Democratic Conditionality - Loans made conditional on moves towards democratic political systems
- Health Conditionality - This implies that the improvement of health should be central to the process of economic adjustment and be defined as such from the outset.