Structural and Sector Adjustment Programmes
Historically governments would devise reform programmes for presentation usually, in the case of structural adjustment programmes, to the International Monetary Fund (IMF) and in the case of sector adjustment programmes to the International Bank for Reconstruction and Development (IBRD). Policy reforms might be necessary both at macro-economic and sector levels. Nowadays balance of payments support programmes are increasingly being replaced by budgetary support programmes at the national and sector levels. Economic reform measures would be accompanied by the provision of foreign exchange funds in support of the balance of payments by the IMF, IBRD and other external financing agencies. Devaluation of the national currency makes imports relatively dearer and exports relatively cheaper thus tending to discourage imports and encourage exports. The Zambian economy is founded on copper production, one result of which is that more than one-third of the population lives in urban areas.