"Cooperation between the institutions is not desirable and there is a case for reforming the international financial architecture."

The article analyzes the responses of IMF and World Bank to two recent criticisms: The increase in the number and scope of conditions, and the significant overlap in the institutions' tasks. While the World Bank recently changed the nature of its conditionality substantially and the IMF promised to enforce fewer conditions in future programs, the institutions refused to be confined to their core competences, but decided to enhance cooperation instead.

The International Monetary Fund (IMF) and the World Bank have never been without critiques. In recent years, however, criticisms have increased markedly. Two major allegations dominated on this front. First, the conditionality was being viewed as far more `all embracing' than was necessary to secure the timely repayment of loans. Instead of focusing on specific instruments, the IMF should aim at general, macroeconomic targets. Conditions should concentrate on topics which are of major importance. The institutions should separate these important suggestions from other, less important advices. This could increase the ownership of the borrowing governments, which would lead to increased compliance with conditionality and eventually more successful programs. Second, IMF and the World Bank should confine themselves to their core competences. The IMF should no longer lend for structural adjustment. The World Bank should be precluded from crisis lending.

institutions, international financial architecture, IMF and World Bank, , recent criticisms, ,number and scope of conditions, , overlap in the institutions' tasks, World Bank, ,nature of its conditionality, , IMF promised to enforce, fewer conditions in future programs, core competences, enhance cooperation.