Structural Adjustment Program

A Structural Adjustment Program (SAP) is a set of policies imposed by international financial institutions, like the IMF or World Bank, on countries facing economic difficulties. These policies aim to stabilize and grow the economy by encouraging cuts in government spending, privatizing state-owned businesses, and removing trade barriers. While intended to make economies more efficient and sustainable, SAPs can also lead to reduced social services and increased unemployment if not managed carefully. Overall, they are reforms designed to improve a country's economic fundamentals but often involve difficult adjustments.