An unfavourable international context, long years of war and economic blockade, and a policy of transformations which affected the efficiency in the allocation of resources generated macroeconomic imbalances in the period 1979-87 which brought the mixed Sandinista economy to the brink of collapse. Structural adjustment, which had been postponed by the war and the international political conjuncture, could not be put off any longer by the beginning of 1988.