What were some of the reasons for backlash against Structural Adjustment Programs? (150-200 words).
Structural Adjustments are a set of policies which are made to get loans from International Monetary Fund(IMF). and World Bank. Structural Adjustments are adjustments made in the economic policies and reforms inorder to receive these funds and stabilise the economy. Countries believe that through this policies thay would be able to tackle poverty and the long term growth of the country. Most of the people argue that structural adjustments are having more issues than actual benefits. Upto an extent that forsaid statement is true.
Backlash Against Structural Adjustments :
Structural Adjustments are not suitable for many countries as they would lower the economic growth of the nation. It is used to stabilise the economy during inflation, but actually it would increase the rate of interest. Unemployment rate would immensely increase when structural adjustments are made. Structural Adjustment often lead to the improvement in Privatsation which would only benefit a small proportion of the population, rest the majority will be affected by this. Privatisation will lead to higher cost for products so there will be reduction in the social welfare activities and the deserved community won't be benefitting much. Through privatisation inequality in the society would increase as they would give more preference for high class people than for the poor. The most affected people are the poor people. The very main reason for backlash against structural adjustment are the public spending. So the unorganised people will be affected. It doesn't give prior importance for public education and health care which are the utmost necessary for a country in the long run.