What is neo-liberalism and why did it lead to SAPs?

Neo-liberalism is an economic and political ideology that emphasizes free markets, privatization, deregulation, and limited government intervention in the economy. It emerged in response to the perceived failures of state-led development and welfare policies, promoting the idea that market forces are the most efficient means of driving economic growth and improving living standards. Structural Adjustment Programs (SAPs) were implemented by international financial institutions like the IMF and World Bank in the 1980s and 1990s as a response to economic crises in developing countries, advocating for neo-liberal policies such as austerity measures, trade liberalization, and the privatization of state assets to stabilize and reform economies. These programs aimed to restore economic stability but often led to social and economic challenges for the affected countries.