Impact of SAPs on Developing Countries

The World Bank and the International Monetary Fund's help has often backfired in some countries through their implementation of structural adjustment programs (SAPs) in the 1980s and 1990s. Its examples can be seen in African countries such as Nigeria, Zambia, and Ghana. Its aim was to stabilize economies and promote growth, but the outcome was quite different. The austerity measures led to cuts in crucial social spending, and liberalized trade policies caused the decline of local businesses, resulting in widespread unemployment. The reduction in government spending further deteriorated infrastructure and public services, negatively impacting the lives of the most vulnerable populations. The SAPs in developing countries proved to be a failed attempt at promoting stability and growth, instead exacerbating the already dire situation for many people in these countries.