Question

What are McMichael's  argument that implementation of SAPs signaled that global financial agencies put profit before people? Assess each argument.

Answer 1

SOLUTION

MICHEAL'S ARGUMENT TOWARDS THE IMPLEMENTATION OF SAP's ON GLOBAL FINANCIAL AGENCIES

Thirty years since its first public use in 1980. the phase structural adjustment programs remains obscure for many anthropologies and public health workers. However structural health programs are the practical tools used by the international financial institutions (IFIs) such as international monetary fund and the world bank at the country level to promote the market fundamentalism that constitutes the core of neoliberilsm. He argues that while other instruments such as global and trade and regional trade pacts, military interventions and embargos are essential to enforce the neoliberal project more broadly, SAPs refer to the country specific agreement negotiated by the IFIs with local ministers of finance that have produced a cascade of profound political, economic and social changes. He also futher added that the primary tenants of neo-liberalism- promotion of free markets, privilization, small government and economic de-regulation have been operationalized at the country level through concerted, formulaic, and harmonized action by the IMF and the World bank through SAPs.

The IMFs role is to maintain stability in the global monetary system, whereas the World bank acts primarly as a lender to the developement projects. SAPs negotiated between the IFIs and the national governments obstensibly seek to help government re-structure their economies to control inflation, repay international debt, and stimulate economic group . It is now well-established that the SAP policies are undertaken in well developed countries to recieve condition based loans from the World bank and the I MF which will help the global financial institutions to put profit before people.