Question

What specific way structural adjustment demands from the IMF and/or World Bank have affected the fate of a country in the developing world? In what way ideology was responsible for these results.

Answer 1

Ans) Over the years it has been widely observed with the help of several studies, that due to several policies of IMF and the World Bank, the LDCs have been circled within the vicious circle of debt, although both the organizations claim to be working in favor of the betterment of such nations.

Now, structural adjustment programs which are carried out by the IMF and the World bank consist of loans forwarded to the LDCs and developing nations or to the countries experiencing a financial crisis. Various programmes of these organizations have been criticized heavily, for several years for the increasing poverty rate in such countries.

Despite their claim to eradicate poverty, the developing nations or LDCs dependency on developed nations have increased rapidly over the years. Structural Adjustment Policies ensure debt repayment and economic restructuring, but this is not the actual scenario in such countries case, as the poor countries have been made to reduce investments on necessities such as health, education and infrastructure, whereas debt repayment seems to be the  priority.