structural adjustment

A structural adjustment is a set of economic reforms that a country must adhere to in order to secure a loan from the International Monetary Fund and/or the World Bank. Structural adjustments are often a set of economic policies, including reducing government spending, opening to free trade, and so on.

They designed to lessen the role of government in an economy and move it closer to a market economy. The goal of SAPs is to reduce scarcity and increase society’s satisfaction — to satisfy more of their unlimited wants.