Structural adjustment in East and Southeast Asia: Lessons from Latin America

One of the main responses to the Asian economic crisis, which began in 1997 , has been the adoption of structural adjustment programs (SAPs), sponsored by the International Monetary Fund (IMF). However, economic liberalization and unmediated integration into global economy were largely responsible fo r the crisis. Further economic liberalization under the auspices of SAPs. w hile seeming to deal with some of the symptoms of the crisis, is likely to exacerbate inequality and future crisis tendencies. This paper examines the context of the Asian crisis. and the: likely impacts of SAPs in Asia by re ference to the experience of Latin America, which has undergone substantial "structural adjustment" over the last twenty years. There, outcomes of the process have included dramatically increased income inequality and depende nce. Despite contextual differences, similar outcomes are likely in Asia. I f the 2000s are not to become a "lost decade" for East and Southeast Asia t hey must learn from the experience of other regions with structural adjustm ent. (C) 2001 Elsevier Science Ltd. All rights reserved.