Structural Adjustment Programmes (SAPs)
By: Saad Ahmed, Sumit Dubey, Kyle Adams, Haseeb Mahmood & Brad Johnson.

"
Debt is an efficient tool. It ensures access to other peoples’ raw materials and infrastructure on the cheapest possible terms. Dozens of countries must compete for shrinking export markets and can export only a limited range of products because of Northern protectionism and their lack of cash to invest in diversification. Market saturation ensues, reducing exporters’ income to a bare minimum while the North enjoys huge savings. The IMF cannot seem to understand that investing in … [a] healthy, well-fed, literate population … is the most intelligent economic choice a country can make. "

— Susan George, A Fate Worse Than Debt, (New York: Grove Weidenfeld, 1990), pp. 143, 187, 235



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- Structural Adjustment Programmes are the policies that the World Bank and IMF (international monetary fund) use in developing countries.
- The intention of these policies is to aid these developing countries in regards to debts.
- To have a continuous flow of funds, the countries which apply for a SAP must obey the conditions they set.

- Designed to control and help these countries foreign investment situation, they do this by eliminating trade and investment regulations.
- This helps boost foreign exchange earnings because it forces them to export more, which then help the government and reduce their debt and deficits.


- SAPs are important because the agencies that implement them say that it helps poor countries recover and get back on track economically.
- They say it’s a key to development and that once the country gains wealth it will eventually go down and spread throughout the country and eventually to the less fortunate.
- SAPs are intended to be a positive thing for developing countries but unfortunately there are many controversies about these plans and have a negative impact on some countries.
- Some of the controversies are, undermining food, security and resources. Also it has been known that they reject the concept of economic growth to build a strong social and environmental society. Lastly it has been beleived that it increases the gap between the rich and the poor in all perspectives.








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- SAPs were initiated in the 80s, there were numerous events which led to them being created here is a number of countries which have been affected by SAPs. This only further proves the point that SAPs are inefficient. This also shows the outcomes of SAPs, the main goal of SAPs are to aid developing countries which struggle financially.


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Algeria
Algeria

(October 1988)
More than 200 people killed in rioting against the high prices and unemployment in wake of SAP.
Benin
Benin

(January-June 1989)
University of Cotonou students strike, paralyzing institution for six months, in protest of non-payment of grants for several months and the government's intention to stop paying them altogether in 1989 as part of SAP reforms. Teachers strike begins in April, with demands for payment of four months' salary arrears, the withdrawal of the 50% reduction in their salaries (part of IMF mandates), the unconditional liberation of all teachers, pupils, and students held during the strike and the reintegration of 401 teachers dismissed in March for striking.
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(March 1985)
General strike called by labor unions, with the support of many agricultural workers, against government's sharp increase in food and gasoline prices as part of its IMF-designed SAP. Troops and riot police called out. Unions accept government's offer to increase basic minimum wage by more than four-fold along with other wage increases.
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(March 1987)
Students in Quito clash with riot policemen during protests against government's SAP. (October 1987) Workers in Ecuador firebomb a bank and block streets with tires during one-day general strike against SAP. (June-August 1999) A broad coalition of civil society organizations, led by indigenous peasants, rise up to demand the curtailment of austerity measures imposed after the IMF’s emergency interventions in the wake of weather catastrophes (La Niña/El Niño), further de-stabilizing the government (January 2000) Indigenous people march on Quito to demand an end to austerity programs and more responsive government. After taking over the parliament building and allying with key members of the military, the indigenous organizations succeed in forcing the resignation of President Jamil Mahuad. Betrayal by the head of the armed forces leads to the vice-president taking over leadership rather than a government of national reconciliation.
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(January 1985)
Demonstrators across the country protest the government's decision to raise fuel prices in accordance with a SAP that began with a 1982 World Bank loan that was renegotiated in November 1984.
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(April 1989)
Riots over increased food prices erupt throughout southern Jordan shortly after announcement of SAP agreed to with IMF. At least five protesters killed by police.
(August 1996)
Riots break out in Karak and other southern cities after IMF demands removal of subsidies, resulting in tripling of price of bread. King suspends Parliament when it refuses to support price hikes. Protesters also target Ministry of Education because of hike in school fees connected with IMF program.
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(January 1994)
Zapatista Army of National Liberation begins an insurrection against the NAFTA and SAP-style policies of the PRI government. The insurrection destabilizes the government and these policies.
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(February 1990)
Students at University of Niamey boycott classes to protest adoption of reductions in educational funding mandated by SAP. During the course of a peaceful demonstration police fired on demonstrators killing three (according to official police sources) or 14 (according to student leaders). Many others were wounded.
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(May 1986)
About twenty students and bystanders at Ahmadu Bello University (ABU) in Zaria massacred by security forces after staging peaceful protests over impending introduction of SAP. More students killed in protests against SAP and the ABU massacre during the following days at Kaduna Polytechnic, the University of Benin and the University of Lagos.
(April 1988)
Students demonstrate at 33 universities against fuel price increase demanded by IMF-inspired SAP.
(May-June 1989)
Dozens of people killed and hundreds arrested in riots and strikes against SAP in Lagos, Benin City and Port Harcourt. Government forced to offer a welfare program called a "SAP Relief Package," the establishment of a mass transit scheme and a “People's Bank,” and a review of the minimum wage.
(March-May 1990)
Students and faculty on campuses nationwide protest government's decision to accept a $150 million university restructuring loan from the World Bank, especially conditions requiring closure of many departments and programs. Military government stages armed assaults and hundreds of arrests, with hundreds more expelled from university system.
(May 1992)
Students at Universities of Ibadan and Lagos protest against implementation of Structural Adjustment Program, which they accused of being responsible for the deterioration of campus facilities and education programs as well as doubling of transport prices. Police respond by shooting at the demonstrators, wounding at least five students. Battles between young anti-government demonstrators and riot police in Lagos leave at least three dead and hundreds injured. The IMF and World Bank made the removal of subsidies and probable increase of the price of gasoline the main imperative in its negotiations with the Nigerian government.
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(December 1993)
A coalition of parties opposed to the neoliberal reform (SAP) measures of the Yeltsin government wins a majority in parliamentary elections.
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(October-November 1987)
Steep currency devaluation and price hikes resulting from arrangements with both the IMF and World Bank lead to demonstrations by about 15,000 in Khartoum to denounce IMF. Students at University of Khartoum occupy buildings, leading to eventual closure of the institution. Street violence and arrests follow.
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(July 28-August 2, 1990)
The Society of Muslims assaults government headquarters and takes President Robinson and other members of the cabinet hostage, demanding an end to IMF-imposed economic austerity measures. Riots and looting follow the assault in Port of Spain; at least 50 people killed.
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(December 1990)
Students at Makerere University protest cutting of stationery and travel allowances arising from a World Bank-imposed SAP. Police fire into a crowd of protesting students, killing two.
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(February 28-March 2, 1989)
About 600 people killed and more than 1000 wounded in rioting over economic measures, including sharp increases in fuel and public transport prices, imposed to satisfy the IMF and World Bank. President Perez, as one of his first acts in office, signed a letter of intent with the IMF putting into place a SAP on February 23. (February 1992) Coup attempt by middle-level military officers, widely supported by the population, fails. The economic goal of the coup's protagonists was the end of Venezuela's SAP.
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(March 1985)
Students at Mbanza Ngungu and Mbuji Mai Universities criticize cuts in higher education budget adopted by the government in compliance with IMF’s SAP.
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(January-February 1987)
Food price riots in the northern copper mining district in response to a SAP announced in December 1986 eventually lead to program’s suspension.



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COMMENTS

- What do YOU think SAPs should do to avoid criticism?
- Do YOU think that these plans ARE affective in some countries in the world? if so where and how?
- In your opinion which country at the moment needs a structural adjustment plan the most?
- If you were in a developing country and needed financial help would you agree to a SAP?
- Does this change your opinion of the World Bank or IMF at all?



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Bibliography

Goff, Peter, ed. "Development Economics Web Guide." Economics Web Guide. May-June 2003. 12 Nov. 2008 <http://www.edexcel.org.uk/virtualcontent/48298/5c_4_structural_adjustment_policies_16_01_03.pdf>

"The Whirled Bank Group." Structural Adjustment Program. 2003. The Whirled Bank Group. 13 Nov. 2008 <http://www.whirledbank.org/development/sap.html>.

Shah, Anup. "Structural Adjustment - a major cause of poverty." Global Issues. 29 Oct. 2008. Global Issues. 12 Nov. 2008 <http://www.globalissues.org/article/3/structural-adjustment-a-major-cause-of-poverty>.

"Structural Adjustment Programmes." Structural Adjustment Programmes. CCN. 13 Nov. 2008 <http://www.chebucto.ns.ca/current/p7/bwi/cccsap.html>.