Structural adjustment programmes and industrialization. This article also gives a short analysis of the roles of the world bank, the imf and the local political elites in this process. The implementation of structural adjustment programmes saps are built on the fundamental condition that debtor countries have to repay their debt in hard currency. Zambia repor t social equity following political independence in 1964, zambia was one of subsaharan africas most prosperous countries and achieved significant progress in the provision of social services. A structural adjustment is a loan provided to a country by the international monetary fund, the world bank, or both, in exchange for structural economic reforms. Pdf lessons from structural adjustment programs and. O box 91, murray street, murray, ky 4207304, usa wrongfooting mncs abstractit is now more than five years since.
The impact of economic structural adjustment programs esaps on women and children. Zimbabwe structural adjustment programs by katie beyer on prezi. Structural adjustment programmes adversely affect vulnerable populations. This policy framework paper pfp gives an overview of the governments adjustment program for the period 19992001.
The paper argues that economic structural adjustment programs esaps, introduced by the world bank. April 1998 not for citation without permission of the authors david dollar and jakob svensson macroeconomics and growth group, the world bank the findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. Structural adjustment and diversification in zambia. The economy has been liberalized, and the macroeconomic situation has improved considerably. The goal of this study was to investigate how the economic reforms have affected people beyond.
Imf employees share capitalist ideals operates under the assumption. Shortcomings and weaknesses of the structuraladjustment. In order to improve the outlook for economic growth and social conditions, the government adopted, in 1999, a mediumterm economic and structural reform program covering the period 19992001. Neo simutanyi centre for policy dialogue cpd1, zambia paper to the sacp democracy conference on the lefts experience of participatory democracy in africa. Education under structural adjustment per cent of the government annual expenditure being used to support the mining industry kelly, 1991. Describes economic objectives, macroeconomic and structural policies for three year adjustment programs supported by esaf resources, as well as associated.
In particular the role played by two interest groupsbusiness, organised labour in supporting or opposing economic reforms will be examined. Structural adjustment is the name given to a set of free market economic policy reforms imposed on developing countries by the bretton woods institutions the world bank and international monetary fund imf as a condition for receipt of loans. World bank adjustment lending includes structural adjustment loans, sectoral structural adjustment loans, imf and world bank structural adjustment programs and. The effects of structural adjustment programs on poverty. Zimbabwe structural adjustment programs by katie beyer on. Poverty worsened in the 1980s and 1990s than the first decade of postindependence zambia, the country built its own institutions without outside help. How the imfworld bank and structural adjustment program.
Zambia particularly in the field of gemstone and industrial mineral, which offer great potential. The general objectives in the agricultural sector were the reduction of government intervention in the market, the promotion of agricultural or nontraditional exports and improvement of food production. Implications for social welfare in zimbabwe saliwe m. The latter two kinds of operations are concessional for lowincome countries. Oberdabernig abstract the focus of this work is to measure the effects of structural adjustment programs saps of the international monetary fund imf on poverty and income distribution. The structural adjustment programme has not been able to get zambia out of its cycle of rising foreign debt. In order to conclusively determine the net impact, pandey and wheeler show that an encompassing, in depth study is required. Then, the government was able to provide free and almost universal social services to its citizenry. The results of this analysis, as reported by dieguez cited by reimers 1991, 321, show that.
However, results obtained in these countries will be presented to serve as a point of comparison. The african ejournals project has digitized full text of. Structural adjustment programs in developing countries. Are the imf and the world bank, via their structural adjustment programmes in the. Structural adjustment programmes saps or economic recovery programmes erps are similar in their essential components. The structural adjustment programs saps are created with the goal of reducing the borrowing countrys fiscal imbalances. Structural adjustment and diversification in zambia fons meijer development economics and planning department, netherlands economic institute, po box 4175, 3006ad rotterdam, the netherlands, has done research in zambia about the feasibility of producing copper semi. The evidence discussed suggests that zimbabwes structural adjustment programme is unlikely to resolve the countrys fundamental problems of structural economic vulnerability, and that the sda. Consistent implementation of a structural adjustment programme.
The bank from which a borrowing country receives its loan depends upon the type of necessity. Zambia, for example, having abandoned a structural adjustment programme in the wake ofthe riots on. Structural adjustment programs are defined as lending policies, supervised by the world bank wb and the international monetary fund imf, that offer emergency financial help to countries like zambia that are struggling to make payments on their national debt imf, 1999. Presentlyproductivity levels per rural capita for importantfood and. Hope has since turned into despair and disillusionment for most people.
Muuka department of management and marketing, college of business and public affairs, murray state universi, p. Newsrescue below is a brief background of the events that led many countries to accept saps. For example, a study on the social effects of the mexican debt crisis reported that education was one of the hardest hit sectors. In country after country, structural adjustment programs saps have reversed the development successes of the 1960s and 1970s, with. This study analyses the impact of structural adjustment measures, as promulgated in the economic structural adjustment programmes esap, on the urban informal sector in zimbabwe. By 1982, the real price of copperwas at its lowest for nearly 40 years krumm, 1984, in kelly, 1991. The effect of structural adjustment programmes on the delivery of veterinary services in africa 2 namibia and ghana in 1997 angniman, 1997, ilemobade, 1996. Reflections on ghana and zambia john loxley an analysis of the experience of ghana and zambia in operating structural adjustment programmes saps illustrates well the debate taking place on the appropriateness of these programmes in the context of african economies. After independence, kenya had been making remarkable progress in the education sector. What explains the success or failure of structural adjustment programs. Describes economic objectives, macroeconomic and structural policies for threeyear adjustment programs supported by esaf resources, as well as associated. Mozambique and zambia structural adjustment programmes saps were imposed by the multilateral agencies, the international monetary fund imf and the world bank, as a nonnegotiable condition for the granting of loans. Structural adjustment and the debt crisis saps were born as a result. The impact of structural adjustment on food production in.
In order to conclusively determine the net impact, pandey and wheeler show that an encompassing, indepth study is required. Tasks and challenges, johannesburg, south africa, 1921 august, 2010 introduction. Structural adjustment, economic growth and the aiddebt. This map was provided by the african development bank exclusively for the use of the readers of the report to which it is attached. The standard structural adjustment reform package known in ghana as the economic recovery program was proclaimed by the government, including a maxidevaluation. Jan 10, 2010 imagine if there were structural adjustments within the local economy, but the government did not have to sendmake the payments overseas. Structural adjustment program sap alert on imf and world. External debt in 2001 stood at 181% of gross national product. N igeria structural adjustment program policies, implementation, and impact may, 1994 western africa department country operations division for official use only document of the world bank this document has a restricted distribution and may be used by recipients only in the performance of their official duties. Jan 31, 2012 conditionalities are implemented to ensure that the money lent will be spent in accordance with the overall goals of the loan. Pdf the impacts of the world bank and imf structural.
The bretton woods institutions, advocated sap as a condition for borrowing development funds. It describes how saps are being implemented and what results they have produced over the past 20 years. An overview of zambia s economic and poverty situation introduction poverty is the most profound challenge that zambia faces today. In the same year, the new government embarked on a structural adjustment programme sap which aimed to remove controls on agricultural prices, privatise over. The macroeconomic adjustment and reform program was supported by a new threeyear prgf arrangement, approved in march 1999. Zambias 19921994 structural adjustment program sciencedirect. This study examines the impact of structural adjustment policy sap on the welfare of zimbabweans, particularly women and children and draws some parallels with economic policy in the us and its effect on social welfare programs and the poor. The case study of cote divoire, senegal, uganda, and zimbabwe. Structural adjustment programs did not move the countries to more sustainable development paths for two basic reasons. Conditionalities are implemented to ensure that the money lent will be spent in accordance with the overall goals of the loan. Zambia human development report 2016 industrialisation and human development poverty reduction through wealth and employment creation empowered lives. As aryeetey and tarp 2000 observe, reforms were designed on the basis of the neoliberal. The effects of structural adjustment programs on poverty and income distribution by doris a. Zambia s povertyreduction programs depend almost entirely on how well it upholds the conditions set by ifis and donor countries.
The latter term became more current in the aftermath ofgrowing popular resistance to the implementation of the former. Agriculture, fishery and forestry, which account for 20 per cent of zambian gdp, shrunk by 2. A lot of the poverty and corruption results from these same structural adjustment programs, which then contributes to this brain drain, thus twisting the knife in the back, so to speak, as some of what little is allowed to be spent on health is now lost to the already rich, and the poor have to bear the burden. The names used and the borders shown do not imply on the part of the bank and its members any. However, adjustment programmes tend to concentrate on expenditure reduction policies, thereby hampering the necessary diversification. In general, adjustment meant liberalising and privatising, although saps were wider in scope in that their developmental aims were highly political. The structural adjustment programs saps connected to imf loans have proven singularly disastrous for the poor countries but provide huge interest payments to the rich. The second section will discuss the politics of structural adjustment in zambia.
Nature and objectives of structural adjustment programs. Structural adjustment programme food and agriculture. The impacts of the world bank and imf structural adjustment programmes on africa. The leading role of the imf has proven problematic in many ways. Namibia did not undergo a sap and in zimbabwe veterinary services were not included in the sap. Chapter 3 structural adjustment and poverty malawi has implemented a series of structural adjustment programmes saps. Coupled with the dwindling income from zambia s exports was the rise in the prices of oil imports.
Poverty and poverty reduction in subsaharan africa. Both malawi and zambia had the same population growth rate at 3. The article highlights the remaining knowledge gaps with respect to input subsidy targeting and effects in zambia. To assist african development, structural adjustment programmes saps provided conditional lending thomson, 2010. Structural adjustment and diversification in zambia wiley online. Structural adjustment programs in zimbabwe discussion ethical issues five main criticisms of imf developed countries hold power over undeveloped countries due to western bias towards capitalism of world economy.
The effect of structural adjustment programmes on the delivery of veterinary services in africa 3 officially recognized as part of the animal health delivery system. Evolution of structural adjustment policies in zambia, 19831991 zambia adopted a systematic structural adjustment programme. Growth focused policies for development and poverty reduction 16. The study is based on a sample of urban informal sector activities in the main cities of harare. Ecomomic policy and development issues, particularly structural adjustment programmes saps have dominated african womens concerns because they have been implicated in the rise of poverty, especially of women, in africa. Lessons from structural adjustment programmes and their effects in africa 59 quarterly journal of international agriculture 50 2011, no. The effects of structural adjustment products cut across a number of sectors in the kenyan society, however this paper will focus on the effects of structural adjustment programs on education, health, agriculture, and politics. Progress along the path of adjustment and structural reform has not always been steady and macroeconomic management has sometimes faltered but there can be no question that, on the threshold of the 21st century, zambia is much better positioned to move forward on an accelerated growth path than at any time in the previous quarter century.
The association of policies and growth with repeated imf and world bank adjustment loans, n. Even the world bank has had to accept that saps have failed the poor, with a special burden falling on. The impact of economic structural adjustment programs. Structural adjustmenta major cause of poverty global issues. In other words, the parts of the adjustment programs that look at fiscal and monetary policies to create alignment and set the economy on a growth path. In january he said edf may not\nissue more than 300 to 500 mln dlrs of paper this year. Kawewe southern illinois university school of social work robert dibie indiana state university dept of political science this study examines the impact of structural adjustment policy sap. In both cases, the voluntary signatures of poor states do not signify consent to the details of the agreement, but need. What explains the success or failure of structural. By globalization challenge initiative, a project of the tides center, usa and the integrated social development programme, isodec, ghana for the full 30plus page text of the structural adjustment program sap information alert for.
Lessons from structural adjustment programmes and their. Lessons from structural adjustment programs and their effects in africa article pdf available in quarterly, journal of international agriculture 50. Effects of structural adjustment programs in the mining industry on women in zambia by irene barankariza thesis submitted to the faculty of graduate and postdoctoral studies in partial fulfillment of the requirements for the master of arts in womens studies the institute of feminist and gender studies university of ottawa. The impact of structural adjustment on the urban informal. Zambia s 1994 local 1992 structural adjustment program gerry n. Did structural adjustment programmes assist african. Particularly in the 1980s and 1990s, when many structural adjustment programmes were drafted, the fund and its macroeconomically trained experts took over the. The major areas of focus in the saps have included the liberalisation of the agricultural sector which centred on price decontrols, market liberalisation, and the repealing of the special crops act, parastatal. Pdf lessons from structural adjustment programs and their. Structural adjustment programmes adversely affect vulnerable. Since zambia embarked on its structural adjustment program in late 1991, much has been accomplished. In practice, macro level implementation involved the. Structural adjustment programs saps consist of loans provided by the international monetary fund imf and the world bank wb to countries that experienced economic crises.
It updates and extends the pfp that was prepared in 1995. The ultimate goal of these policies is to reduce the incidence of poverty in zambia and to improve the wellbeing of the zambian people. When zambia embarked on a structural adjustment program sap in 1992, there was tremendous hope for an economic turnaround. J k nyerere was reluctant to implement the structural adjustment programs saps. The story of structural adjustment programme in nigeria from the perspective of the organized labour nwagbara, eucharia nwabugo, ph. This leads to a policy of exports at all costs because exports are the only way for developing countries to. In march 1992 he organized and directed zambia s first ever national conference on that countrys structural adjustment program. Zambia abandoned the stewardship of ibrd and imf structural adjustment programs and chose to seek an accommodation to economic.
Compared to many other southern african countries, zambia has relatively abundant land and water. An assessment of zambias structural adjustment experience. Structural adjustment program sap alert on imf and world bank lending to tanzania executive summary. The impact of economic structural adjustment programs esaps. Lesotho, tanzania, and zambia showed major improvements in their fiscal. Furthermore, the authors also blame the adjustment policies to have failed to take into account the. The two bretton woods institutions require borrowing countries to implement certain policies in order to obtain new loans or to lower interest rates on existing ones. Structural adjustment programs apart from having advantages it has a lot of negative consequences of which the saps measures and conditionalitys imposed to developing countries including tanzania perhaps that is why our late mwl. The positive developments in the first five years ofreform appear to be not sustainable.
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