Chapter 4


 People may be dead before the tree bears fruit. Therefore, even if the poor and vulnerable
 will benefit in the medium and long-term from the adjustment policies, some immediate
 intervention may become necessary to mitigate hazardous short term effects.

1) Overall performance of adjustment programs

The performance of adjustment programmes has been subject to wide and controversial
discussions. Various methods have been applied to assess the results, such as comparisons of
macro-economic indicators in countries before and after the programmes were launched
and/or a comparison of economic performance between adjusting and non adjusting
countries. The results of some of these exercises are recorded in Tables 4.16 and 4.17.

 Table 4.16: Sub-Saharan African countries before and after adjustment


 Indicator Annual average in 3 years Annual average during
 prior to programme start programme implementation
 GDP growth in percent

 A 2.3 4.1

 B 2.2 3.5

 Inflation in percent

 A 27.5 17.5

 B 26.9 26.3

 Budget balance in percent of GDP

 A -13.9 -11.4
 B -13.5 -13.5

 Current account balance in percent of GDP

 A -15.6 -16.1

 B -15.0 -17.5


Note: comprises countries which had completed the annual programmes or the programme reviews by May 31, 1992
A: countries with current programmes
B: all adjusting countries
Source: country data and IMF estimates, quoted in Saleh M. Nsouli, Structural Adjustment in Sub-Saharan
Africa, Finance & Development, 3.1993


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