ABSTRACT
During the 1980s poverty rose significantly in the two regions predominantly preoccupied with adjustment-sub-Saharan Africa and Latin America. The rise in poverty occurred both among countries adjusting with IFI assistance and ‘nonadjustment lending’ countries. But while increasing poverty is the norm for countries undergoing adjustment, this is not necessary; poverty can be reduced during adjustment. The main conclusion arising from the analysis in this book is that governments can make choices during adjustment which offset, or accentuate, any ill-effects of adjustment on the poor. This conclusion arises from both theoretical analysis and the large variety of experience observed over the 1980s with respect to policy choices during adjustment.
