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What are Structural Adjustment Programs? How does SAPs encompass free trade policy? How do IMF and...

What are Structural Adjustment Programs? How does SAPs encompass free trade policy? How do IMF and WB implement such policies like SAPs and free trade when giving loans to developing countries?

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ANS- Structural adjustment policies are economic policies in which countries need to follow an order to qualify for the New World Bank and International Monetary Fund loans and helping them in paying debts of older debts that they owe to banks that are commercial, government, etc. It is designed for all countries but on an individual basis and guiding principles are common that include privatization, liberalization, etc. SAPs require different counties to devalue their currencies against the dollar.

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