What outcome is commonly sought by implementing structural adjustment policies?

Implementing structural adjustment policies typically aims to promote efficient resource allocation within an economy. These policies are often recommended by international financial institutions like the International Monetary Fund and the World Bank, particularly for countries facing economic challenges.

The core idea behind structural adjustment is to make economic systems more flexible and efficient, thereby enabling markets to function effectively. This often involves reducing government intervention in the economy, reforming state-owned enterprises, and enhancing the role of market forces. Consequently, resources can be allocated based on supply and demand, which can lead to increased productivity and, ultimately, economic growth.

In contrast, the other options are less aligned with the primary goals of structural adjustment policies. For example, increased regulation typically involves more government control, which is contrary to the intent of these reforms. Similarly, international trade restrictions can stifle economic growth and hinder efficiency, as they limit the free flow of goods and services. Welfare expansion might also contradict the goals of structural adjustment, as these policies frequently emphasize reducing government spending and reallocating resources toward more efficient uses rather than expanding welfare programs. Thus, the focus on achieving efficient resource allocation distinguishes structural adjustment policies and underscores their intended economic outcomes.