Critically discuss the conditionality of IMF loans from the perspective of different theories of IPE. There are three IPE (international political economy) which include the national economic perspective, the national liberal perspective and critical point of view. These theories are used to analyze the global political economy. The national economic outlook. The national economic perspective tests the importance of the state's national interest and understanding actions from a global perspective. This perspective is a state-centered theory, so it focuses primarily on the state's own interests. Additionally, this theory dates back to the rise and expansion of nation-states in Europe in the 15th century. Nevertheless, "mercantilists believed that there was a limited amount of capital in the world and that each nation should focus on its own interests by restricting trade with other nations." Additionally, it was called a “zero-sum game.” “One nation’s victory is another nation’s loss.” Two well-known proponents of the mercantilist approach were Alexander Hamilton and Fredrick List. “List argued that Germany would have to industrialize through trade barriers in order to reach the larger economy of the United Kingdom.” However, some developed countries also use this approach for a specific reason, for example; the United States used this theory on a specific division. Like protecting its aerospace industry. There are therefore key players in the national economic perspective; the state is the main actor in the international political economy. Therefore, this theory focuses on states rather than individuals (O'Brien and Williams 2013 p.9). However, this approach makes two main claims, one is that the interstate system is radical and therefore an obligation. .... middle of paper ......economic difficulties. Countries must resolve their economic difficulties in such a way that it does not affect the international economy. Thus, countries must repay loans plus interest and the funds provided by the IMF must be used as per the IMF agreements and rules. Nevertheless, there are different methods that a country must agree to before obtaining financial support from the IMF, such as prior actions, quantitative performance. criteria, indicative objectives and structural benchmarks. First, prior actions are procedures that a country agrees to implement before approval of IMF financial support. For example, formal agreement of budget to programs. Second, quantitative performance criteria are specific conditions that must be met to complete the analysis. Third, indicative targets are dedicated to improving QPCs (quantitative performance criteria)