Has Structural Adjustment Programs Mitigated or Enriched: The Development of Sub-Saharan Africa

Abstract

The policy paper analyzes the impact and effect of Structural Adjustment Programs (SAP) on the social cost living in Sub-Saharan African states. The issue of whether the implementation of SAP really mitigated the plight of many, or whether these policies pushed SSA in further economic deterioration. After a description of the background problem that consist of political, economic and socio/cultural factors that severely affect SAA, the policy paper analyzes the efficacy of the Structural Adjustment Program instituted by the International Monetary Fund to resolve the economic problems. The data accompanying this analysis, however, indicate a general trend of negative impact on economic and social lives. Significantly the socio-economic decline of SAA has occurred with much influence from overall funding strategies created by the IMF. The other purpose of this policy paper has been to identified and analyze the major socio/economic indicators that exemplify the living standards of the people of SAA. In addressing this issue, the paper employs interrupted time series analysis as a way to determine the levels of government expenditure in relation to socio-economic index. This is to determine the extent to which individuals/the private sector can resolve or be affected by government divestment of its role.Besides this policy reform options which are aimed at mitigation the effect of SAP on Sub Saharan African countries have been advocated.These policy options include:1. The Status Quo (SAP)2. Strengthening and diversifying Africa’s productive capacity3. Improving the level of income and its pattern for distribution 4. Rural Enterprise Programs5. Adjusting the pattern of public expenditure to satisfy people’s essential needs.The six criteria used for the evaluation of the policy options are:Effectiveness, adequacy, efficiency, equity, political feasibility, economic efficiency, and responsiveness.According to the information and data provided, the two policy options to be recommend to the sub-Saharan African countries are the strengthening and diversifying Africa’s productive activity and rural enterprise programs. These are equally recommended but priority should be giving to the first for short and long term effects.On recommendation, it has been suggested that there should be more inter and intra governmental coordination among SSA countries.