SAPs

SAPs

1. The debt Crisis 1980

   • response?
     • IFIs= IMF, WB
     • Structural Adjustment Programmes
       • Loans based on conditions
       • first loan 1980
       • Balance budget= decrease expenditure, increase income
       • reduce the role of the state

2. Impact:

   • Political?
     • Austerity protests Mid 1970s onwards
     • undermines democracy
     • sovereignty
     • unable to satisfy the legitimate demands of their citizens
   • Gender?
     • feminisation of poverty
     • services in reproduction, ante and post natal care reduced
     • nursing the sick falls to the women
     • water and sanitation
     • sex work
     • increased responsibility
     • abuse
   • social?
     • 1980 and 1988 p.c. decreased by 30% in SSA
     • in the 42 poorest countries spending on health care fell by 50%
     • aid epademic

3. In defence of SAPs- WB

   • 1. it takes time, gets worse before it gets better
   • 2. Nothing wrong with policies trying to reign in state spending- Governments not implementing them properly

4. Significance for long term?

   • social transformation replaced by stabilisation

5. HARRISON READING

   • Main factors in the debt crisis:
     • generalised faith in debt led development
     • African economies integrated into Global markets in a difficult position- mainly as the exporters of primary commodities
     • African govts frequently run up debts i pursuit of goals which yield low returns and generate renewed desires for loans
   • situational factors exacerbated
     • oil price hikes- price of oil rose for $3.22 per barrel in 1973 to $34 per barrel in 1982
     • rise of the petro dollar on the market- european banks needed to loan out money very fast
     • neoliberalism
   • SAP conditions: rolling back the state, liberalising the economy, opening the national economy to the world.
   • 1980s: argument emerged that the demands for fiscal austerity from the WB led to Governments cutting back on social provision
     • made the poor and vulnerable more so
     • led to SDA (social dimensions of adjustment
   • Diane Elson: Women
     • sex work to make more money
     • Nigeria: girls leave school and return to the household. Male children suited to success at school
   • 2 areas which benefited from SAPs: peasants and businesses