IMF and World Bank's structural adjustment programmes caused severe damage to global South, warranting reparations
A paper in BMJ Global Health argues that structural adjustment programmes (SAPs) imposed by the IMF and World Bank in the 1980s caused severe economic and social damage to countries in the global South. These SAPs, triggered by debt crises and U.S. interest rate hikes, mandated austerity, privatization, and deregulation, reversing post-independence development gains. This led to stagnant incomes, weak public health systems, and increased poverty, with the global South losing an estimated $480 billion annually in potential national income. The authors advocate for reparations and systemic changes, including abolishing SAP conditions and democratizing these institutions, or replacing them with alternatives like the BRICS New Development Bank.
Key Points
- Structural Adjustment Programmes (SAPs) by IMF and World Bank in the 1980s significantly harmed the global South.
- SAPs mandated austerity, privatization, and deregulation, reversing post-independence development.
- These policies led to stagnant incomes, weak public health systems, and increased poverty in affected regions.
- The global South collectively lost an estimated $480 billion per year in potential national income during this period.
- The authors call for reparations from the IMF and World Bank, along with systemic reforms like abolishing SAP conditions and democratizing the institutions.
Exam Facts
- Paper: "Structural adjustment: damages, reparations and pathways to non-recurrence" in BMJ Global Health, March 2026.
- Authors: Jason Hickel, Salmaan Keshavjee, Maxine Burkett, Eugene T. Richardson.
- Global South economic growth before SAPs: 3.2% annually; during SAPs: 0.7%.
- Estimated annual loss in national income for global South: $480 billion.
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