A Welfare-Based Evaluability Assessment of Structural Adjustment Programs in Africa

Abstract

ABSTRACT The typical methods of evaluating the impact of Structural Adjustment Programs (SAPs) are based on macroeconomic indicators such as the GDP growth rate, budget deficits, inflation and balance of payments disequilibrium. These methods have a tendency to take Human Development Indicators (HDIs) such as health, education, infant mortality and life expectancy for granted. In this paper, we develop a methodology for evaluating the relationship between SAPs and HDIs. Using data from Sub-Saharan African countries, the paper finds evidence that adjustment policy instruments do influence HDIs, suggesting that SAPs should aim at improving both economic and non-economic indicators.