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  • Essay / Structural Adjustment Policy - 1857

    In response to the growing popularity of the neoliberal paradigm of the 1980s, led largely by the United States and its Western allies, this perspective now dominates the economic and political ideology of most sub-regions. -Saharan African countries. African states readily adopted SAPs to continue receiving Western aid from multilateral aid institutions. Conditional lending now focuses on market-friendly policies (Haque 1999). Privatization policies aimed to rationalize public sector investments and make industries in developing countries globally competitive (Noorbakhsh & Paloni 1999). SAPs require recipient states to privatize most public industries and significantly reduce the amount of social programs. These drastic cuts to social programs can be extremely damaging to an already weakened society characterized by high levels of poverty. This manifests itself in growing inequalities and increasingly deteriorating conditions of poverty. In addition to worsening poverty and inequality, environmental deterioration is occurring on a large scale in the Global South to meet economic demands (Haque 1999). Market competition trumps good environmental policy (Haque 1999). These neoliberal austerity measures are the main cause of increasing poverty and inequality with environmental degradation (Haque, 1999). Not only is inequality increasing within developing countries, but also the gap is widening between capitalist nations and much of the world. south. Despite the efforts of the SAP, the South remains under the control and influence of capitalist nations. SAPs emphasize economic growth, but fail to address widespread poverty among the population (Haque 1999). Across much of sub-Saharan Africa, "jobless growth" is apparent wherever it may be...... middle of paper ...... 1968). This creates a higher level of unemployment and underemployment. Labor in developing countries is divided into traditional and modern categories. Much of sub-Saharan Africa works in traditional sectors such as agriculture. However, in an increasingly developed region, sectors are moving toward modernization (Frank 1968). As countries faced a process of deindustrialization, the “brain drain” effect continued to harm a wide range of sectors in Africa. Between 1986 and 1990, 50,000 to 60,000 educated people left Africa (Lockwood 2005). The departure of these professionals to work in the West was detrimental to the continued development of Africa. As Africa began to develop, public spending on civilian professionals was unsustainable. This changed dramatically in the 1980s, when the value of civil service salaries fell by 80 percent (Lockwood 2005).