BRIEFLY:The SAPs Story
11.19.07 (12:02 am) [edit]Most developing contries have the misfortune of being financially desperate.It's caused by the domestic droughts,political strifes,or a low currency.The resultant causes them to rush to the arms of the two most powerful monetary institutions in search of loans.They offer this help,using the carrot approach-"we'll only do so on one condition:they implement structural adjustment programs".SAPs have the disadvantage of negatively affecting the most vulnerable members of the society.For example,the pregnant women lose their children because they lack maternal care while givng birth,children drop out of school cause they lack fees, small scale farmers don't make profits because the cost of production is too high.Yet the World Bank and IMF think that by doing this,developing countries wil ease of their international debts and balance the internal budget.How wrong they are!