An Overview of structural Adjustment programmes in Kenya
Abstract
Structural Adjustment Programmes may be defined as a set of policy changes or
reforms, which combine short-run stabilization measures and longer-run adjustment
measures. In particular, the measures consist of the following elements: fiscal policies
aimed at reducing budget deficits through tax increase and reduction of public
expenditure. Monetary policies aimed at reducing the money supply either directly or
by means interest rate policy, wage and price policies to control inflation and exchange
rate policies to reduce the balance of payments (van Der Hoeren and van der Geest
1999:9-10). According to Ikiara and Ndungu (1999:73), Structural Adjustment policies
in developing countries mainly involve changes in macroeconomic policies to make the
economy adaptable to changing economic realities and basically more market oriented.
Such macro prices include rate of interest, the exchange rate domestic prices and
wages. They furthermore observe that the short-run consequences of structural
adjustment policies have been a severe recession in many developing countries, rising
unemployment, inflation and exchange rate depreciation capital inflows. With the
accompanying short-run This paper analyzes the consequences of SAPs on
vulnerable groups in Kenya. It is argued that SAPs have increased the poverty levels
among those groups. For example, it has undermined food security and self- reliance
and led to unsustainable resource exploitation environmental destruction population dislocation
and displacement
URI
http://profiles.uonbi.ac.ke/wilfred_subbo/publications/overview-structural-adjustment-programmes-kenyahttp://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/26326
Citation
An Overview of structural Adjustment programmes in Kenya, , African Academy of Sciences. Dicsovery and Innovation Journal , Volume 19, Issue No 4, p.12-15, (2007)Publisher
University of Nairobi College of Humanities and Social Sciences
Subject
Structural Adjustment ProgrammeSAP
economic adjustment measures
short run programme
long term programme
budget deficit
inflation
micro and macroeconomic policies
poverty levels
food security
developing countries
Kenya