What economic policies are implemented to improve efficiency and drive growth, often linked to financial assistance?

Structural adjustment refers to a set of economic policies commonly implemented by countries, particularly those in developing regions, often in response to a financial crisis or as a condition for receiving financial assistance from international institutions like the IMF or World Bank. These policies aim to restructure and reform the economic framework of a country to enhance efficiency, stimulate growth, and promote stability.

The measures can include liberalizing trade, reducing government spending, privatizing state-owned enterprises, and addressing systemic macroeconomic imbalances. By focusing on efficiency, structural adjustment seeks to create an environment conducive to sustainable economic growth, which can be critical for countries trying to regain financial stability and attract investment.

While monetary policy involves managing the money supply and interest rates to influence economic activity, and fiscal policy pertains to government spending and taxation decisions, these do not specifically link to the condition-driven reforms characteristic of structural adjustment programs. Supply-side economics, on the other hand, emphasizes policies that improve production capacity and efficiency, such as tax cuts and deregulation, but may not be directly tied to financial assistance or the restructuring nature of economic policies under structural adjustment.