A Critical Review of the Literature on Structural Adjustment and the Environment

This paper analyzes the available literature about the effects of structural adjustment programs (SAPs) on the environment and the convincing evidence for their success or failure. The studies covered refer to the SAPs by the World Bank as well as...

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Bibliographic Details
Main Authors:	Gueorguieva, Anna, Bolt, Katherine
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ENVIRONMENT STRUCTURAL ADJUSTMENT PROGRAMS GOVERNMENT PROGRAMS ECONOMIC REFORM TRADE LIBERALIZATION POLLUTION AGRICULTURE LAND TENURE FORESTRY WATER SECTOR ENERGY URBAN ENVIRONMENT PUBLIC SECTOR GOVERNANCE ACCOUNTING ADVERSE EFFECTS AGRICULTURAL EXTENSION ANECDOTAL EVIDENCE ASIAN DEVELOPMENT BANK BIODIVERSITY CHEMICAL FERTILIZERS CIVIL SERVICE COAL COASTAL ZONES COMMODITIES CONSERVATION COST OF CAPITAL CREDIT RATIONING CROP MIX CROP YIELDS CROPS DEBT DEFORESTATION DEREGULATION DEVELOPMENT BANKS ECONOMIC ACTIVITY ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC INCENTIVES ECONOMIC INSTRUMENTS ECONOMIC LIBERALIZATION ECONOMIC SECTORS ECONOMIC WELFARE EMISSIONS ENERGY CONSUMPTION ENTITLEMENTS ENVIRONMENTAL ASSESSMENT ENVIRONMENTAL BENEFITS ENVIRONMENTAL DAMAGE ENVIRONMENTAL DEGRADATION ENVIRONMENTAL ECONOMICS ENVIRONMENTAL IMPACT ENVIRONMENTAL IMPACTS ENVIRONMENTAL MANAGEMENT ENVIRONMENTAL PRESSURES ENVIRONMENTAL PROTECTION ENVIRONMENTAL QUALITY EQUILIBRIUM EXPENDITURES EXPLOITATION FARMERS FARMING FINANCIAL INSTITUTIONS FINANCIAL SECTOR FOREST MANAGEMENT FORESTS FUEL FUEL WOOD GREENHOUSE GREENHOUSE GASES INCOME INCOME DISTRIBUTION INCOME LEVELS INSTITUTIONAL DEVELOPMENT INTEGRATED PEST MANAGEMENT IRRIGATION LAND PRICES LIVESTOCK LIVING STANDARDS LOW-INCOME COUNTRIES LRMC MAIZE MANURE MARGINAL LANDS MIGRATION NATIONAL INCOME NATURAL ENVIRONMENT NATURAL RESOURCES OIL OIL CRISIS OVERGRAZING PESTICIDE USE PESTICIDES POPULATION PRESSURES PRICE CHANGES PRIVATE SECTOR PRIVATIZATION PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS PUBLIC FINANCE QUOTAS REGIONAL DEVELOPMENT BANKS RESERVOIRS RESOURCE USE SAPS SOCIAL SERVICES SOIL DEGRADATION SOIL EROSION SOIL FERTILITY SOILS STRUCTURAL ADJUSTMENT SUBSIDIARY SUSTAINABLE DEVELOPMENT SUSTAINABLE USE TAXATION TRANSPORT TREES UNEMPLOYMENT URBAN CENTERS URBANIZATION WASTE WASTE MANAGEMENT WATER RESOURCES WATER USE WATERSHED WATERSHED MANAGEMENT WETLANDS
Online Access:	http://documents.worldbank.org/curated/en/2003/04/2455492/critical-review-literature-structural-adjustment-environment http://hdl.handle.net/10986/18396

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Summary:	This paper analyzes the available literature about the effects of structural adjustment programs (SAPs) on the environment and the convincing evidence for their success or failure. The studies covered refer to the SAPs by the World Bank as well as to general government programs that have similar policy implications. SAPs are designed to reform economies to become more liberalized and export-oriented while reducing the role of governments that have become inefficient bureaucracies. Because of the implications of policies such as debt accumulation and trade, a concise literature review on debt and trade liberalization is also included. Despite the controversy surrounding structural adjustment and the environment, the debate has been largely based on anecdotal evidence and country case studies. Most of the studies reviewed are not quantitative and have not applied rigorous statistical methods. The conclusions of studies on the effects of structural adjustment (SA) on the environment are strongly influenced by what is examined, the sectoral level, and the stage of the SA process. The infrequency of high-caliber studies is due to data scarcity and statistical limitations. There is little reason to doubt, however, that over the longer term, the sorts of changes in incentive structures and relative price changes brought about by SA lending will have an impact on the environment. Economies undergoing SA will experience both growth (assuming the success of SAPs) and structural shifts, which will affect the extraction of natural resources and the level of pollution emissions.

A Critical Review of the Literature on Structural Adjustment and the Environment

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