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Structural Adjustment - Essay Example

It is also considered as one of the ways to overturn the fall as well as marginalization of these states as globalization of the economy of the world increases (Callaghy, 2002). Structural adjustment can be defined as the strategies which are executed in the developing countries by the International Monetary Fund as well as the World Bank. These strategic alterations are required for availing new loans from the International Monetary Fund or the World Bank, or for gaining lower interest rates on established loans (Bird, 2004). Relation of Structural Adjustment with IMF/World Bank Developing nations strive to face urgent domestic precedence, from poverty reduction to combating epidemics. It is because of the debt repayments burden that constantly weakens the efforts made by indebted government in order to alleviate the widespread poverty in their societies. Presently, the International Monetary Fund and the World Bank distribute debt reliefs to those countries that are highly burdened with debt by means of a program which is referred as Heavily Indebted Poor Countries Initiative (HIPCI). HIPCI endeavors to ensure that the economically backward nations must not face debt burden that cannot be managed by them. Nonetheless, in order to attain these objectives, HIPCI narrows its meaning related to sustainable debt and its persistence upon the adoption of numerous economic as well as infrastructure related contexts which is generally known as structural adjustment

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Structural Adjustment Concept of Structural Adjustment One of the most remarkable, systematic as well as invasive forms of external intervention related to developing countries since few decades has been, what is essentially known as, ‘structural adjustment’…
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