What is structural adjustment program?

A structural adjustment program (SAP) is a set of economic reforms and policies implemented by countries, often under the guidance of international financial institutions like the International Monetary Fund (IMF) and the World Bank. These programs are typically aimed at stabilizing a country's economy, promoting growth, and improving balance of payments by reducing fiscal deficits, liberalizing trade, and privatizing state-owned enterprises. However, SAPs have been criticized for leading to social and economic hardships, particularly for vulnerable populations, due to cuts in public spending and social services.