Structural adjustment: damages, reparations and pathways to non-recurrence.

Area of Science:

• Development Economics
• Global Health Policy
• International Finance

Background:

• Neoliberal structural adjustment programmes (SAPs) were widely implemented by the International Monetary Fund (IMF) and World Bank from the 1980s/1990s.
• SAPs mandated austerity, privatization, and deregulation in numerous countries across Asia, Africa, and Latin America.

Purpose of the Study:

• To review the evidence of negative impacts of SAPs on human welfare and economic development.
• To propose options for reparations and distributive justice for affected nations.
• To advocate for the democratization or restructuring of the IMF and World Bank.

Main Methods:

• Literature review of empirical evidence on the socio-economic and health impacts of SAPs.
• Analysis of financial outflows and unequal exchange resulting from structural adjustment.
• Examination of policy recommendations for institutional reform and reparations.

Main Results:

• SAPs are associated with declining real wages, increased poverty, and deprivation of basic needs.
• Structural adjustment led to increased neonatal and maternal mortality and reduced healthcare access.
• These policies facilitated financial drain from the Global South through unequal exchange.

Conclusions:

• The IMF and World Bank's SAPs have inflicted severe damages on human welfare and economic justice.
• Reparations and distributive justice are necessary to address the harms caused by SAPs.
• Fundamental reform, democratization, or replacement of the IMF and World Bank is crucial to prevent future harm.