STRUCTURAL ADJUSTMENT PROGRAMME (S.A.P.)

STRUCTURAL ADJUSTMENT PROGRAMME (S.A.P.)

Structural Adjustment Programme is a set of free market economy policy reform organized for developing countries by Britain and world institution i.e. World Bank and international Monetary Fund [IMF] as a condition to receive of loan to enable Developing Countries to survive from economic failure or to bring changes to their economy.

Structural Adjustment Programme was initially created as a method of economic recovery after the 2nd World War and the massive economic recession of 1970 and 1980s. Structural Adjustment Programme was organized when many developing countries were adopting socialism with the aim to change these countries to free economy or the laissez-fair economy.

The conditions in order to help developing countries, get loan includes;

1)    Devaluation of currencies in relation to U.S Dollar.

2)    Cutting or removing subsidies on goods and services.

3)    Removal of price control and minimum wage Laws.

4)    Liberalization of trades and privatization of public sectors.

5)    Political changes from single to multi-party system.

6)    Allowing multi-national cooperation to invest in benefiting countries (benefited from S.A.P)

Over 30 countries accepted and implemented S.A.P among which are Nigeria, Mozambique, Ghana, Uganda, Tanzania, Egypt, South Africa, Angola, Namibia, etc.