Review:
Structural Adjustment Programs
overall review score: 2.5
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score is between 0 and 5
Structural adjustment programs (SAPs) are economic policies imposed on developing countries by international financial institutions with the goal of promoting economic growth and stability.
Key Features
- Implementing austerity measures
- Privatization of state-owned enterprises
- Trade liberalization
- Reducing government spending
- Currency devaluation
Pros
- Can lead to increased foreign investment
- May improve efficiency in state-owned enterprises
Cons
- Can exacerbate poverty and inequality
- May lead to social unrest and political instability
- Have been criticized for their negative impact on human development