STRUCTURAL ADJUSTMENT PROGRAMMES/135One major paradox is that the IMF and World Bank have
continued to grow in strength and stature even though their stated
objective of restoring long-term growth has not been met and even
though their policies have actually heightened financial instability.
It is worth noting, however, that since the 1994 Mexican crisis, the
IMF has had the upper hand over the World Bank when it comes to
defining government policies. The IMF has come out even further on
top in the wake of the 199 7-9 8 Asian crisis. The World Bank remains
in charge when it comes to dealing with the poorest countries,
dealing with NGOs (in order to 'co-opt' them) and setting up
programmes for the poorest sectors of the population in countries of
the Periphery.
As for the other omnipresent word, 'adjustment', to what exactly
are countries of the South expected to 'adjust'? The world economy
is not a united whole, it has a hierarchy. Developing countries cannot
merely imitate policies pursued in industrialised countries at some
point in the past. It is clear, therefore, that structural adjustment of
these countries to the industrialised world cannot offer any real
prospects for development. Quite the opposite, in fact.
THE STATED OBJECTIVES OF ADJUSTMENT LOANS
The defining essence of adjustment loan objectives can be found in
Article 1 of the IMF Charter: priority must be given to 'balanced
growth of international trade'. As such, countries that always import
more than they export need financial support so that they are not
excluded from international commerce. Without loans, they cannot
buy. The IMF explains that such interventions not only enable these
countries to continue to participate in international trade; as a result
of structural adjustment programmes, they also lead them to increase
such participation (Lenain, 1993; Christin, 1995; Norel and Saint-
Alary, 1988).
IMF statutes also stipulate that it should 'adopt policies that aim to
help members resolve their balance of payments difficulties and to
ensure that the target countries take appropriate measures for the
temporary use that will be made of these resources'. It is on this basis
that the IMF intervenes directly in borrower countries to set their
economic policies.
Adjustment programmes are the best possible guarantee that a
country will continue to service its debts. Indeed, the central priority