Poverty and Malnutrition Consequences of Structural Adjustment: World Bank Policy

Abstract

The adjustment policies advocated by the World Bank are scrutinized in regard to whether they contribute to the elimination of poverty over the long term, and whether they alleviate or aggravate poverty and malnutrition in the present and the foreseeable future, with emphasis on the second question. Early structural adjustment policy is briefly outlined and the more recent policy stance in the World Bank's study Poverty and hunger: issues and options for food security in developing countries is discussed in more detail. This indicates that governments need to intervene actively to ensure adequate food consumption by all through cost-effective and administratively and politically feasible methods. Some illustrations are presented of the new position being taken by the Bank; (1) Grain marketing reform programme in Mali, 1980, (2) Proposed Agricultural Incentive Programme for Guinea-Bissau, 1986, (3) Use of Food Aid Fund to support proposed structural adjustment in Mauritania, 1986, (4) Proposed Compensatory Programme for reducing food subsidies in Morocco, 1986.