Development - Structural Adjustment Programs

Structural Adjustment Programmes (SAPs) are economic policies for developing countries that have been promoted by the World Bank and International Monetary Fund (IMF) since the early 1980s by the provision of loans conditional on the adoption of such policies.

Conditions:

• Cut social expenditure
• Focus on economic output
• Devalue overvalued currencies
• Trade liberalisation
• Stop government overspending
• Remove state subsidies
• Privatise state owned enterprises
• Improve governance and fight corruption

Effectiveness:

• Privatised agriculture
• Exporting more food
• Stopped spending on education
• Less spending on healthcare
• In Sengal unemployment reached 40%