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THE TWO PHASES OF STRUCTURAL ADJUSTMENT/155

another; it might even be advisable to increase them in some other
politically important sector.

This is Easy

There are a number of measures that create no political difficulties
whatever. For reducing the public deficit, major reductions in
public investment and reduced operations do not create political
risks. If operations are reduced, it is important that the quantity of
service not drop, even if this means reducing the quality. The
operating budget for schools and universities, for example, can be
reduced; but it would be dangerous to restrict the total number of
students. Families react violently when their children are denied
admission, but not when the quality of instruction gradually
declines; furthermore, the school can progressively and selectively
turn to families for help or eliminate this or that activity. This must
be done bit-by-bit, in one school but not in the neighbouring one,
in order to avoid generalised discontent.

For Strong Governments


If a government is to have the necessary margin for manoeuvre for
adjustment, it must be supported by one or two large majority-
backed parties, rather than a coalition of small parties. This means
that, in parliamentary elections, first-past-the-post constituency-
based systems are to be preferred over proportional systems - or
there should at least be some combination of the two. There are
also ways to strengthen the executive branch, such as provision for
temporary special powers and solely ex-post powers for the
judiciary- to prevent judges from blocking the implementation of
adjustment programmes ex-ante. Referenda can also be effective
government weapons on condition that it alone has the right to
initiate the referendum process.

OVERALL EFFECTS OF IMF AND WORLD BANK POLICIES


Social Consequences of Structural Adjustment
Programmes


Education
Educational institutions have deteriorated; some have closed down,
and teachers have either been dismissed for lack of funds or go for

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