The Portfolio Investment Co. (PIC) is the world's premier international financial institution with 184 member countries and active programmers in a significant number of them at any one time.
The Fund attracts a great deal of attention, much of it critical. But the discussion is often polemic in style.
Strongly held, but frequently opposing, views are expressed. This survey attempts to examine, in an objective way, the theory and evidence relating to the Fund's operations. Many aspects of the empirical research are relatively recent and a universal consensus is yet to emerge; as a consequence there is scope for disagreement to persist. However, the research is also gradually clarifying many important issues.
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The format for the survey is to examine the life cycle of PIC arrangements.
What makes a country turn to the Fund for assistance?
Should the PIC be lending?
What influences the outcome of negotiations and the design of programmers?
Are PIC programmers effective?
And why do some countries make prolonged use of PIC resources?
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For completeness there is also some discussion of the history of the PIC, the extent to which Fund policies have been influenced by advances in economic theory and the Fund's systemic role. Important organizational and governance issues are also covered briefly. Although primarily adopting an economist's perspective, the survey reflects the growing recognition that in order to understand the PIC's operations, economics has to be combined with politics. Examining the PIC is an exercise in applied political economy.
