structural adjustment programs
By SAPs benefit a narrow stratum of the private sector—mostly those involved in export production, trade brokering, and portfolio finance. In addition, both Washington and the IFIs consistently fail to broaden the scope of SAPs to consider poverty, unemployment, the health of the domestic market, the impact of development patterns on the environment, and a government’s capacity to ensure that the benefits of economic development are equitably distributed. The World Bank recently launched a historic initiative to encourage such participation, working with civil society groups in several countries to assess the impact of SAPs (see SAPRI under Sources for More Information). Designed by Baker and Brady of the U.S. Treasury Department, debt-renegotiation plans also ensured that neoliberal structural adjustment became a prerequisite for debt relief. These winners are usually well-connected elites and transnational companies. Increased unemployment and decreased government services are the most direct blows, but changes in the tax system often emphasize easy-to-collect, regressive sales taxes that also disproportionately affect the lower classes. SAPs usually include several basic components geared toward reducing inflation, promoting exports, meeting debt-payment schedules, and decreasing budget deficits. The U.S. plays a fundamental role in designing and financing structural adjustment programs of the main IFIs, namely the World Bank and the International Monetary Fund (IMF), as well as those of the regional multilateral banks such as the Inter-American Development Bank (IDB). SAPs are broadly imposed on nearly all developing countries, while the North only selectively adheres to its own neoliberal principles. STRUCTURAL ADJUSTMENT PROGRAMME IN TANZANIA Tanzania got her independence in 1961 at that time it was under the leadership of Julius K. Nyerere, Tanzania adopted and practiced socialism even though, the country was a multi-ethnic society, all the groups were united by the language of Kiswahili introduces by Nyerere. Structural adjustment programs, or SAPs for short, are a complex of loans that the World Bank (WB) and the International Monetary Fund (IMF) offer to a country suffering from an economic crisis. Kritisiert werden die Strukturanpassungsprogramme auch von dem US-amerikanischen Wirtschaftswissenschaftler und Nobelpreisträger Joseph E. Stiglitz. The leading role of the IMF has proven problematic in many ways. Eine Studie des Entwicklungsökonomen William Easterly konnte keinen positiven Effekt von Strukturanpassungsprogrammen auf Wirtschaftswachstum finden.. Content under a Creative Commons Attribution licence, by Carol Welch, Friends of the Earth, and Jason Oringer, To assist African development, Structural Adjustment Programmes (SAPs) provided “conditional lending” (Thomson, 2010: 197) – conditional, in that governments receiving debt relief were obliged to adjust their economic policy.In general, ‘adjustment’ meant liberalising and privatising, although SAPs were wider in scope in that their developmental aims were highly political. In seinem Buch Die Schatten der Globalisierung betont er, dass das Vorgehen des IWF für die Entwicklung der Länder des Südens nicht förderlich, sondern sogar schädlich (gewesen) sei. After decades of subverting populist and interventionist central governments, the IFIs have recently accepted some of the criticisms leveled against their neoliberal notions of a minimalist state. Understandably, the World Bank maintains that its structural adjustment programmes (SAPs) have been ‘successful’. Structural adjustments … Social safety nets and good governance reforms do not compensate for the serious flaws that SAPs introduce by deregulating laws and diminishing the state’s capacity to protect the welfare of its citizens. IMF Lending to Poor Countries—How does the PRGF differ from the ESAF? liegen in ihrer Zuständigkeit.“. The structural adjustment program is essentially a conditional loan. Structural adjustment programs were sponsored by the Bretton Woods Institutions (BWIs) and ubiquitously included capital account and trade openness, devaluation, a reduction in the public sector and privatization of publicly owned companies. But SAPs are driven more by neoliberal ideological principles than by objective evaluations of a country’s specific economic problems and potential. The U.S. leverages its dominant role in the global economy and in the IFIs to impose SAPs on developing countries and open their markets to competition from U.S. companies. The lender services the loan based on the assumption that certain fiscal policies will take place within the borrow- country. In agriculture, SAPs augment the economic liberalization resulting from free trade agreements, undermining peasant agriculture while reinforcing export-oriented agribusiness (and its dependence on dangerous agrochemicals). Conditions and terms of all lending should be stated publicly so that the recipient country’s citizenry is fully aware of the potential impact of lending agreements. They generally entail severe reductions in government spending and employment, higher interest rates, currency devaluation, lower real wages, sale of government enterprises, reduced tariffs, and liberalization of foreign investment regulations.
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