The country policy and institutionalassessment (CPIA) assesses the quality of a country’spresent policy and institutional framework. Quality refersto how conducive that framework is to fostering povertyreduction, sustainable growth, and the effective use ofdevelopment assistance. The CPIA ratings are used in theInternational Development Association (IDA) allocationprocess and several other corporate activities. The Bankinitiated country assessments in the late 1970s to helpguide the allocation of IDA lending resources. The CPIAconsists of a set of criteria representing the differentpolicy and institutional dimensions of an effective povertyreduction and growth strategy. This criterion assesses thequality of monetary and exchange rate policies in a coherentmacroeconomic policy framework. The objective is to evaluatewhether the monetary and exchange rate policy framework isconsistent with economic stability and sustained medium-termgrowth. This criterion covers the extent to which monetaryand exchange rate policy framework: (a) maintains short- andmedium-term internal and external balances, and isconsistent with price stability objectives; and (b) offersflexibility to deal with internal and external shocks.
PDF
download
878987797
028-85220240
