Conditions
Some of the conditions for structural adjustment can include:
- Cutting expenditures, also known as austerity.
- Focusing economic output on direct export and resource extraction,
- Devaluation of currencies,
- Trade liberalization, or lifting import and export restrictions,
- Increasing the stability of investment (by supplementing foreign direct investment with the opening of domestic stock markets),
- Balancing budgets and not overspending,
- Removing price controls and state subsidies,
- Privatization, or divestiture of all or part of state-owned enterprises,
- Enhancing the rights of foreign investors vis-a-vis national laws,
- Improving governance and fighting corruption.
These conditions have also been sometimes labeled as the Washington Consensus.
Read more about this topic: Structural Adjustment
Famous quotes containing the word conditions:
“The depth and strength of a human character are defined by its moral reserves. People reveal themselves completely only when they are thrown out of the customary conditions of their life, for only then do they have to fall back on their reserves.”
—Leon Trotsky (1879–1940)
“Mankind always sets itself only such tasks as it can solve; since, looking at the matter more closely, we will always find that the task itself arises only when the material conditions necessary for its solution already exist or are at least in the process of formation.”
—Karl Marx (1818–1883)
“We as a nation need to be reeducated about the necessary and sufficient conditions for making human beings human. We need to be reeducated not as parents—but as workers, neighbors, and friends; and as members of the organizations, committees, boards—and, especially, the informal networks that control our social institutions and thereby determine the conditions of life for our families and their children.”
—Urie Bronfenbrenner (b. 1917)