What is a Structural Adjustment Program?
A structural adjustment program is a plan implemented by the World Bank and the International Monetary Fund (IMF) in a developing nation to try to get their economies to be more productive. The goal of a structural adjustment program is to help the borrowing nation pay off its debts and have a growing economy that will sustain them into the future. A structural adjustment program may be implemented as part of an initial agreement to lend money, or it may be brought in later as part of terms for the borrowing nation to receive a lower interest rate on past loans. The idea of the structural adjustment program is one of most contentious within the so-called Bretton Woods Institutions: the IMF and the World Bank. Some people feel that since borrowing nations are usually in dire straits, they have no choice but to comply with whatever is laid out as a structural adjustment program, in order to receive funds to keep their country functioning. This means that the IMF and the World Bank can fo
