DEVELOPMENT STRATEGY AND STRUCTURAL ADJUSTMENTS, ALTERNATIVE TO IMF POLICY - APPLICATION TO MADAGASCAR AND TANZANIA

The upheavals in the world economy since 1971 have had a direct impact on the policies of most countries, especially the aid policies toward the Third World, and have brought a host of new problems. This study analyses the impact of the structural adjustment programs of the IMF on Madagascar and Tanzania. The author proposes a method which would measure the macro-, meso- and micro-economic impact of the SAPs and suggests that a switch in priorities - namely favouring production over demand - would go along way toward reducing developing countries' needs for imports, and thus reduce their indebtedness.