“The IMF and World Bank have demanded that poor nations lower the standard of living of their people”
Till this very day many countries in the developing world are still in debt and a cause of that are the Structural Adjustment Programmes (SAPs). SAPs is a programme that is led by the IMF and World Bank to help developing and third world countries reduce the poverty levels and also reducing debt levels.The IMF and World Bank claim that SAPs will reduce poverty.
However much criticism has been made for the programme in that it results poor nations to reduce spending on the services like health, education and development, in effect the standard of living of people decreases and therefore increase poverty levels.
Therefore the real effect of SAPS is that the gap between rich and poor countries WIDENS !!
The government that receive SAPs have to:
- spend less
- reduce consumption
- remove or decrease financial regulations
This shows that SAPs is just a way of the rich countries making money from the poor countries in order to the gap between rich and poor is still present. the losers are the millions of people that living in developing and third world countries that deserve to have a decent standard of living just like jus the the 20% of the worlds population living above the brandt line.