STRUCTURAL ADJUSTMENT PROGRAMME IN SOUTH ASIAN COUNTRIES: PERFORMANCE OF MACROECONOMIC INDICATORS

This article evaluates the implementation of Structural Adjustment Programmes (SAPs) across South Asian countries during the 1980s and early 1990s. It critically examines the macroeconomic performance indicators—growth, inflation, fiscal balance, external accounts—before and after SAPs, highlighting mixed outcomes. While fiscal consolidation and liberalization spurred some growth, poverty and inequality often deepened, and public investment in health and education declined. The study emphasizes that macroeconomic stability is not synonymous with social development and stresses the need for complementary social safety nets. The paper underscores the role of governance, sequencing of reforms, and domestic political support in determining success or failure.

The body begins with a historical overview of SAPs introduced under IMF and World Bank conditionalities. Section One presents comparative data from Bangladesh, India, Pakistan, and Sri Lanka on inflation reduction, current account stabilization, and fiscal deficit management. Section Two analyzes unintended consequences: rising unemployment, subsidy cuts, and deteriorating public services. Section Three discusses political economy constraints—elite capture, bureaucratic inertia, and public resistance—that shaped reform trajectories. Section Four highlights lessons learned: the need for gradual sequencing, investment in institutions, and the protection of vulnerable groups. The conclusion calls for a balanced approach that combines fiscal prudence with inclusive policies, arguing that the ultimate test of adjustment is sustainable and equitable development.