Structural Adjustment Program ( Saps )

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Structural Adjustments
The debt crisis in the 1980s gave Washington the opportunity to “blast open” and fully subordinate third World economies through World Bank-IMF structural adjustment programs (SAPs). Starting in 1980, developing countries were unable to pay back loans taken from Western commercial banks which had gone on a huge lending binge to Third World governments during the mid to late1970s when rising oil prices had filled up their coffers with petro-dollars. The World Bank and the IMF imposed SAPs on developing countries who needed to borrow money to service their debts. The World Bank’s SAPs, first instituted in1980, enforced privatization of industries (including necessities such as healthcare and water), cuts in government
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As the Center for Economic and Policy Research puts it, “These are enormous differences by any standard of comparison and represent the loss to an entire generation–of hundreds of millions of people –of any chance of improving its living standards.” Increased Poverty
According to the World Bank, in 2003, over 350 million people (more than half of Africa’s population of 682 million) lived below the poverty line of U.S.$ 1 a day, a 75% increase over the 200 million figure for 1994.
Lower Incomes Low Human Development Indicators Decrease in Health Care and Increase in disease Increased Debt Burdens Lack of Clean Drinking Water
More than half of Africa’s population is without safe drinking water and two-thirds do not have Water privatization schemes in Ghana and South Africa are further depriving poor people of access to potable water. Decrease in education Levels HIPC
In response to public demands to address the debt crisis of poor countries and provide debt relief, the World Bank and the IMF introduced the Highly
Indebted Poor Countries (HIPC) initiative in 1996. This has been seen as a failure due to the limited debt relief provided and its SAP requirements. Countries must successfully complete six years of structural adjustment before they become eligible for debt relief under HIPC. By the end of
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