Structural Adjustment Programs (SAP)

Structural Adjustment Programs (SAPs) are economic reforms imposed by international financial institutions, like the IMF or World Bank, on developing countries facing economic difficulties. These programs aim to stabilize the economy, promote growth, and reduce debt by encouraging policies such as reducing government spending, privatizing state-owned enterprises, deregulating markets, and fostering open trade. While intended to improve economic stability, SAPs often lead to social impacts like reduced public services and increased inequality, as they prioritize financial stability over immediate social welfare.