Structural Adjustment Programs

Structural Adjustment Programs (SAPs) are economic policies implemented by countries facing financial crises, often in collaboration with international organizations like the IMF or World Bank. These programs typically involve requiring countries to reduce government spending, increase exports, and implement market-friendly reforms. The goal is to stabilize the economy, foster growth, and attract foreign investment. However, SAPs can lead to social challenges, such as increased poverty and reduced public services, as they often prioritize fiscal discipline over social welfare. Critics argue that SAPs can harm vulnerable populations while proponents believe they are necessary for long-term economic health.