However, there are genuine uncertainties surrounding as to what constitute an appropriate institutional reform agenda. Keeping in view the country-specific imperatives, it is felt that case-by-case study could be the preferred approach to initiate institutional reforms. This would allow appropriate innovation and adaptation to suit the local conditions.
Minimising vulnerability to exogenous shocks The role of Fund Assistance for countries facing exogenous shocks can hardly be overemphasised, given the fact that these shocks can have negative impact on developing countries’ growth, macroeconomic stability, debt sustainability and poverty ratios. The impressive gains made by developing countries in recent years can be considerably eroded when they face such exogenous shocks.