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Structural adjustment, alienation, and mass protest.

Bernhard Reinsberg1, Thomas Stubbs2, Louis Bujnoch3

  • 1University of Glasgow, School of Social and Political Sciences, United Kingdom; Centre for Business Research, University of Cambridge, UK.

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|December 5, 2022
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Summary
This summary is machine-generated.

International Monetary Fund (IMF) structural adjustment programs can cause political instability through both material hardship and alienation from foreign-imposed policies. This study explores both pathways using global data from 1980-2014.

Keywords:
AusterityConditionalityGrievancesInternational monetary fundProtestsStructural adjustment

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Area of Science:

  • Political Science
  • Economics
  • International Relations

Background:

  • International Monetary Fund (IMF) structural adjustment programs involve policy reforms for borrower governments.
  • Existing research links IMF programs to political instability, primarily through material hardship.
  • The mechanisms driving this relationship require further scholarly investigation.

Purpose of the Study:

  • To investigate the causal relationship between IMF structural adjustment programs and political instability.
  • To examine two distinct mechanisms: material hardship and alienation from foreign-imposed policies.
  • To analyze the role of government type and borrowing history in this relationship.

Main Methods:

  • Analysis of data from up to 168 countries between 1980 and 2014.
  • Statistical testing for alienation effects independent of policy conditions.
  • Assessment of hardship effects based on the intensity of fiscal austerity.

Main Results:

  • Evidence suggests alienation effects from IMF program participation, leading to increased protests.
  • Alienation effects are more pronounced with left-wing governments and non-repeat borrowers.
  • A positive correlation exists between fiscal austerity intensity and the number of protests, indicating hardship effects.

Conclusions:

  • IMF programs can foster political instability via both material hardship and alienation.
  • Alienation from imposed policies represents a significant, previously underexplored pathway.
  • Findings highlight the complex interplay between international organizations, domestic politics, and economic reforms.