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By Jane Harrigan, Hamed El-Said (eds.)

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Extra resources for Aid and Power in the Arab World: World Bank and IMF Policy-Based Lending in the Middle East and North Africa

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They found IMF credits in the more democratic recipient countries are larger in pre-election and post-election years, while the credits in more authoritarian regimes are marginally smaller in post-election years. It is not just the receipt of a loan that may be influenced by Western countries; the terms of the loan might also be affected. 118–119) reveals that at least onethird of 17 countries studied secured favourable loan terms on their IMF programmes due to the intervention of major shareholding countries on their behalf.

The coefficients on GDP per capita (LGDPPC[–1])34 and GDP growth (GDPG[–1]) are no longer significant; the coefficient on the current account balance (CAB[–1]) is still insignificant; and the coefficients on short term debt (SDEBT[–1])35 and the change in reserves (D(RES/GDP)) changed slightly in terms of magnitude. For those political variables, the dummy PEACE is positive and significant, the democracy index DEM is negative and significant and the dummy for the year after a legislative election DELEC[+1] is positive and significant.

Hussein soon criticised Saddam Hussein and openly Economic and Political Determinants 25 talked about regime change in Iraq, and went further by hosting Iraqi opposition leaders. 4 million Stand-By Agreement was signed with the IMF in February 1992. Since the mid-1990s Jordan has been further rewarded for her peace overtures to Israel. In 1993, Jordan started direct negotiations with Israel under the Oslo Accord of 1991–1992, leading in October to a Common Agenda agreement on issues related to territory and water, refugees, and arms control.

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