{"id":73666,"date":"2026-05-14T18:36:02","date_gmt":"2026-05-14T13:06:02","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=73666"},"modified":"2026-05-14T18:38:05","modified_gmt":"2026-05-14T13:08:05","slug":"global-south-accountability","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/14-05-2026\/global-south-accountability","title":{"rendered":"The Toll of Structural Adjustments on the Global South and a Case for Accountability"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/IR<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In the 1980s, the IMF and World Bank <strong>put conditions on financing the global South.\u00a0<\/strong>\n<ul class=\"wp-block-list\">\n<li>Decades later, many countries in the region struggle with <strong>weak public health systems and high levels of poverty.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In a recent paper published in BMJ Global Health argued that the institutions that implemented these programmes now <strong>owe reparations.<\/strong><\/li>\n\n\n\n<li><strong>Global South in 1970s: <\/strong>Between 1960 and 1980,<strong> real per capita income grew <\/strong>across <strong>Asia, Africa, and Latin America.\u00a0<\/strong>\n<ul class=\"wp-block-list\">\n<li>Countries that had recently thrown off colonial rule were investing in public healthcare and education.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>1980s:<\/strong> In the 1980s, the International Monetary Fund (IMF) and the World Bank began <strong>structural adjustment programmes across Asia, Africa and Latin America.\u00a0<\/strong>\n<ul class=\"wp-block-list\">\n<li>Decades later, many countries continue to struggle with<strong> weak public health systems, stagnant incomes and high levels of poverty.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#fff2cc\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p><strong>Global South<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The term <strong>\u201cGlobal South\u201d<\/strong> was coined by <strong>Carl Oglesby<\/strong>, an American political activist, in <strong>1969.\u00a0<\/strong>\n<ul class=\"wp-block-list\">\n<li>He used the term to describe <strong>countries suffering from political and economic exploitation<\/strong> by developed nations of the Global North.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>In the simplest sense, Global South refers to the countries of <strong>Asia, Africa, Latin America, and Oceania.\u00a0<\/strong>\n<ul class=\"wp-block-list\">\n<li>Most of these countries, where <strong>about 85% of the world population lives<\/strong>, <strong>experienced colonial rule <\/strong>and historically lagged in achieving substantial levels of industrialisation.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>According to the <strong>United Nations Conference on Trade and Development<\/strong>, Global South countries typically exhibit lower levels of development, higher income inequality, rapid population growth, agrarian-dominant economies, lower quality of life, shorter life expectancy, and significant external dependence.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Structural Adjustment Programmes (SAPs)<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>SAPs <\/strong>were <strong>economic reform measures<\/strong> imposed mainly by the International Monetary Fund and the World Bank <strong>on developing countries<\/strong> facing debt crises during the 1980s and 1990s.\u00a0<\/li>\n\n\n\n<li><strong>SAPs generally demanded three major reforms:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Austerity Measures: <\/strong>Reduction in public expenditure on healthcare, education, food subsidies, and social welfare. Aim was to divert savings towards repayment of external debt and creditors.<\/li>\n\n\n\n<li><strong>Privatisation:<\/strong> Transfer of public sector enterprises and services into private hands. Included privatisation of utilities, transport, banking, and other state-owned industries.<\/li>\n\n\n\n<li><strong>Economic Liberalisation and Deregulation: <\/strong>Removal of industrial regulations, tariffs, labour protections, and capital controls. Opening domestic markets to foreign trade and investment.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Countries had <strong>very limited bargaining power<\/strong> because defaulting on international loans could isolate them from global financial markets.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Social and Economic Impact of SAPs<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Slowdown in Economic Growth: <\/strong>Before SAPs, the global South recorded average annual growth of around 3.2%.\n<ul class=\"wp-block-list\">\n<li>During the structural adjustment era of the 1980s\u20131990s, growth declined sharply to nearly 0.7% annually.<\/li>\n\n\n\n<li>The South collectively lost an average of $480 billion per year in potential national income during this period.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Decline in Incomes: <\/strong>In Latin America, real income per adult declined significantly after 1980 and recovered only decades later.\n<ul class=\"wp-block-list\">\n<li>Sub-Saharan Africa experienced prolonged income decline and stagnation.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Rise in Poverty and Food Insecurity: <\/strong>Trade liberalisation and currency devaluation increased prices of essential commodities.<\/li>\n\n\n\n<li><strong>Adverse Health Outcomes: <\/strong>SAPs severely affected public health systems because:\n<ul class=\"wp-block-list\">\n<li>Government spending on healthcare was reduced,<\/li>\n\n\n\n<li>Hospitals and clinics were closed,<\/li>\n\n\n\n<li>Recruitment of doctors and nurses declined,<\/li>\n\n\n\n<li>Imported medicines became expensive due to currency devaluation,<\/li>\n\n\n\n<li>Studies linked SAPs to higher child mortality, increased maternal deaths, deterioration in nutrition and disease control.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Capital Flight and Financial Outflows: <\/strong>Removal of capital controls enabled multinational corporations to repatriate profits abroad.\n<ul class=\"wp-block-list\">\n<li>Trade deregulation and weak financial controls facilitated tax evasion and illicit outflows.<\/li>\n\n\n\n<li>This reduced funds available for domestic development and welfare.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Criticism of SAPs<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It prioritised debt repayment over human development.<\/li>\n\n\n\n<li>Increased inequality and poverty.<\/li>\n\n\n\n<li>Weakened state capacity.<\/li>\n\n\n\n<li>Reduced policy sovereignty of developing countries.<\/li>\n\n\n\n<li>Favoured interests of developed countries and multinational corporations.<\/li>\n\n\n\n<li>The governance structure of the IMF and World Bank is also criticised because:\n<ul class=\"wp-block-list\">\n<li>Developed countries hold disproportionate voting power.<\/li>\n\n\n\n<li>The Global North dominates decision-making.<\/li>\n\n\n\n<li>The United States has veto influence in the IMF.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Debate on Accountability<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Recent debates argue that the IMF and World Bank should acknowledge responsibility<\/strong> for the economic and social damage caused by SAPs.<\/li>\n\n\n\n<li><strong>Suggested measures include:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Compensation for lost income and welfare,<\/li>\n\n\n\n<li>Restoring investments in healthcare and education,<\/li>\n\n\n\n<li>Estimating losses caused by austerity and capital outflows,<\/li>\n\n\n\n<li>Democratising global financial institutions.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>However, legal accountability remains difficult because these institutions enjoy sovereign immunity protections.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Structural Adjustment Programmes marked a major shift in the development trajectory of many countries in the Global South.\u00a0<\/li>\n\n\n\n<li>While intended to stabilize economies and ensure debt repayment, SAPs often produced long-term social and economic hardships through austerity, privatisation, and deregulation.\u00a0<\/li>\n\n\n\n<li>The debate today increasingly focuses on reforming global financial governance, ensuring policy autonomy for developing countries, and creating a more equitable international economic order.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/news\/international\/the-toll-of-structural-adjustments-on-the-global-south-and-a-case-for-accountability\/article70971370.ece\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> In the 1980s, the IMF and World Bank put conditions on financing the global South.\u00a0 <\/li>\n<p><\/p>\n<p><strong> About <\/strong><\/p>\n<li class=\"ms-5\"> In a recent paper published in BMJ Global Health argued that the institutions that implemented these programmes now owe reparations. <\/li>\n<li class=\"ms-5\"> Global South in 1970s: Between 1960 and 1980, real per capita income grew across Asia, Africa, and Latin America.\u00a0 <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/14-05-2026\/global-south-accountability \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-73666","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/73666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=73666"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/73666\/revisions"}],"predecessor-version":[{"id":73669,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/73666\/revisions\/73669"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=73666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=73666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=73666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}