Structural Adjustment Agreements (SAAs) was developed to help poor countries with economic crisis but according to many studies SAAs has negative effect on economic growth of poor countries and worsens government human rights practices. Countries with large population and weaken economies are more likely to have SAAs, having a large population and being relatively poor are also causes of human rights violations. Therefore, it may be the events in the country which are responsible for poor human rights implementation instead of SAAs.
Research shows that structural adjustment conditions cause problems for marginalized and for poor people of the society because SAAs demands to lessen public employment, removal of price subsidies for essential goods and services such as education, health and other basic necessitates of life. On one hand it is beneficial to have SAAs because free market allow people to have their own business easily but if we talk about poor people in society who don’t have enough to eat or to wear properly from where they will start to have a new business. On top of this if government will stop to provide them basic rights then number of poor people will increase, lower middle class people and other vulnerable groups will also suffer from poverty. If more people will be poor than more problems will be in the society and human rights will also be violated. According to the study, “national economies grow fastest when basic human rights are respected” SAAs is causing more poverty which causes violation of human rights and that leads to threat for economies. In this way IMF and World Bank are “damaging their own mission”
In the given reading it says that, “democracies also are at a disadvantage when negotiating with the World Bank” why?