Structural adjustment loan ( SAL ) is a type of loan to developing countries . It is the mechanism by which international financial institutions , such as the World Bank and Monetary Fund , impose structural adjustment . [1] They carry (often controversial) policy conditions, which have included: (see Washington Consensus ). [2]

1. Fiscal policy discipline;

2. Redirection of public spending from subsidies ( “Especially indiscriminate subsidies”) Toward broad-based provision of key pro-growth, pro-poor services like primary education , primary health care and infrastructure investment;

3. Tax Reforms qui Broaden the tax base and lower marginal tax rates, while Minimizing dead weight loss and market distortions ;

4. Interest rates that are market determined and positive (purpose moderate) in real terms;

5. Competitive exchange rates ; Devaluation of currency to stimulate exports;

6. Trade liberalization – liberalization of imports, with particular emphasis on elimination of quantitative restrictions (licensing, etc.); Any trade protection to be provided by low and relatively uniform tariffs; The conversion of import quotas to import tariffs ;

7. Liberalization of inward foreign direct investment ;

8. Privatization of state enterprises;

9. Deregulation – the abolition of restrictions, and the prudent oversight of financial institutions;

10. Legal security for property rights .

Structural adjustment loans are very controversial. For criticisms, see structural adjustment .

Some studies suggest that they have been “weakly associated with growth and reform did seem to reduce inflation.” [3] Others have argued, however, that “the outcomes associated with frequent structural adjustment lending are poor.” [4] Critics (often from the left) accuse such policies to be “not-so-thinly-disguised wedge [s] for capitalist interests.” [5]


  1. Jump up^ “Life and Debt” a film by Stephanie Black. See:
  2. Jump up^ Peter Burnell & Vicky Randall (2005). “Development (chapter 16)”. Politics in the Developing World (2nd ed.). Oxford University Press, Inc. pp. 327-328. ISBN  0-19-929608-1 .
  3. Jump up^ Crisp, Brian; Kelly, Michael. (1999) The Socioeconomic Impacts of Structural Adjustment. International Studies Quarterly. Flight. 43. No. 3 (Sept. 1999). 533-552.
  4. Jump up^ Easterly, William. (2006) The White Man’s Burden. Penguin Books. Pages 68-72.
  5. Jump up^ Kapur, Davesh. (1998). The IMF: A Cure of Curse? Foreign Policy. No. 111. pp. 114-129.