The Inter-American Development Bank's Assessment of Structural Adjustment: Questionable Theory and Pre-ordained Policy

Abstract

In recent annual reports, the Inter-American Development Bank (IDB) has analyzed the impact of the era of structural adjustment on the economy and society in Latin America. The reports are at odds in their analyses of the reform era's successes, as seen in reduced inflation and modest economic growth, as compared to its failures, as seen in rising poverty and income inequality, falling real wages and lower educational attainment. In spite of the conflicting evidence, the IDB concludes that neoliberal reforms need to be deepened. Such a stance, it will be shown, leads the IDB into frequent contradiction and tautology.