The International Monetary Fund (IMF) & World BankStructural Adjustment Programs : Review study of adjustment-aid theory

Abstract: Monetary funding to developing countries is today accompanied by so called “Structural Adjustment Programs” (SAPs) imposed by the IMF and the World Bank, consisting of economical policy reforms that the countries have to undergo in order to be eligible for loans. The impact of these adjustment loans is widely criticized due to the negative effects observed. Our purpose is to investigate in depth why these adjustment programs have not delivered the expected results. We’ve found that there exist some undesirable consequences following SAP implementation that has a hindering effect on growth. These, combined with the complicate context in which the IMF and World Bank operates can be seen as the explanation for the adversity experienced.