An Analytical Study of IMF and World Bank Structural Adjustment Policies in Developing Economies

Abstract

This bachelor's thesis provides a detailed analysis of the IMF and World Bank lending processes and their profound effects on borrowing nations across diverse economic systems. It starts by outlining these organizations' historical development and explaining how important a role they have played in forming the world economy. An in-depth analysis of structural adjustment policies (SAPs) and their intricate effects on recipient states are provided in Chapter 2, which also classifies and explores SAPs. In Chapter 3, the effects of loan defaults—which are common in economies with central planning—are examined, along with rescue policies and the idea of odious debt. The thesis draws attention to the complex issues surrounding IMF and World Bank initiatives, such as their support for authoritarian governments and the potential to further deepen debt traps, even despite their major contributions to global financial stability.