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HOW DID THE IMPLEMENTATION OF STRUCTURAL ADJUSTMENT PROGRAMMES (SAPS) BY INTERNATIONAL FINANCIAL INSTITUTIONS AFFECT AFRICAN COUNTRIES? 3.1 Refer to Source 3A - NSC History - Question 3 - 2016 - Paper 2
Question 3
HOW DID THE IMPLEMENTATION OF STRUCTURAL ADJUSTMENT PROGRAMMES (SAPS) BY INTERNATIONAL FINANCIAL INSTITUTIONS AFFECT AFRICAN COUNTRIES? 3.1 Refer to Source 3A. 3.1... show full transcript
Worked Solution & Example Answer:HOW DID THE IMPLEMENTATION OF STRUCTURAL ADJUSTMENT PROGRAMMES (SAPS) BY INTERNATIONAL FINANCIAL INSTITUTIONS AFFECT AFRICAN COUNTRIES? 3.1 Refer to Source 3A - NSC History - Question 3 - 2016 - Paper 2
Step 1
3.1.1 Why, according to the source, did the government in Washington decide to suppress the economies of Third World countries?
Answer
According to the source, the government in Washington decided to suppress the economies of Third World countries due to the debt crisis of the 1980s. This crisis created a situation where international financial institutions, like the IMF and World Bank, felt compelled to intervene in order to stabilize the economies of these countries.
Step 2
Step 3
3.1.3 Define the term trade liberalisation in the context of globalisation.
Answer
Trade liberalisation refers to the process of reducing barriers to trade between nations. In the context of globalisation, it involves the removal of restrictions such as tariffs and quotas, allowing for a freer exchange of goods and services which is intended to benefit both developing and developed countries by increasing market access and consumer choice.
Step 4
3.1.4 Explain how the privatisation of industries affected African countries.
Answer
The privatisation of industries negatively impacted African countries as it often led to essential services being privatized. This meant that previously subsidized basic goods became inaccessible to the poor, exacerbating economic inequalities. Moreover, the countries lost control over crucial economic resources, making it challenging to provide for the basic needs of their populations.
Step 5
3.2.1 Comment on why Leach stated that structural adjustment programmes were controversial.
Answer
Leach stated that structural adjustment programmes were controversial primarily because they often prioritized economic stabilization over social welfare, which led to widespread protests and discontent among affected populations. Critics argued that these programmes favored foreign investment and interests at the expense of local communities, making them a contentious issue.
Step 6
3.2.2 How, according to Serageldin, should the gap between the rich and the poor be filled in developing countries?
Answer
According to Serageldin, the gap between the rich and the poor in developing countries should be filled by investing in social services and infrastructure. This includes improving education and healthcare access, which are necessary to uplift the impoverished and ensure that they can participate in the economy, thus narrowing the wealth divide.
Step 7
3.2.3 Explain to what extent you would consider this source useful to a historian researching how structural adjustment programmes were imposed on developing countries.
Answer
This source is useful to a historian to a great extent as it provides insights into the motivations and consequences of structural adjustment programmes. It highlights the perspectives of both advocates and critics, allowing historians to understand the broader implications these programmes had on social and economic conditions in developing countries.
Step 8
3.3 Explain how the information in these sources is similar regarding the impact that structural adjustment programmes had on developing countries.
Answer
Both Sources 3A and 3B highlight the negative impacts of structural adjustment programmes on developing countries. They emphasize the loss of sovereignty over economic decisions and the increased burden of debt repayment. Furthermore, both sources critique the way these programmes prioritized international monetary concerns over local social welfare.
Step 9
3.4.1 Give THREE reasons in the source that suggest that the ‘economic renaissance’ for Africa appears to be over.
Answer
- The debt burden on African countries has significantly increased, leading to worsened economic conditions.
- Certain initiatives that promised economic growth have failed to materialize, further undermining confidence in recovery.
- Existence of widespread poverty and unemployment rates indicates that the envisioned economic turnaround is not on track.
Step 10
3.4.2 Quote any TWO pieces of evidence from the source that show that the IMF has failed Africa.
Answer
- Evidence from the source indicates that the IMF's policies have not led to substantial improvements in economic growth.
- The source states that African countries have continued to struggle with basic social needs despite IMF interventions.
Step 11
3.4.3 Comment on why you think debt cancellation for countries in Africa became a necessity.
Answer
Debt cancellation became a necessity for African countries as accumulation of debt hindered their economic development. With high levels of debt service consuming significant portions of national budgets, countries found it increasingly difficult to invest in essential services and infrastructure, leading to heightened social unrest and instability.
Step 12
3.5.1 Explain the messages that the cartoonist conveys regarding debt cancellation.
Answer
The cartoonist conveys that debt cancellation is essential for historical justice and economic recovery. The imagery used suggests that indebted countries suffer from exploitative practices and that cancelling their debt would allow them to prioritize growth and recovery rather than merely servicing debt.
Step 13
3.5.2 How does the cartoonist portray the following:
Answer
(a) The West: The West is portrayed as the dominant party that imposes unfair practices on African countries, benefitting at their expense.
(b) Africa: Africa is depicted as a victim of historical exploitation, struggling to emerge from the shadows of debt and looking for opportunities for recovery.
Step 14
3.6 Using the information in the relevant sources and your own knowledge, write a paragraph of about EIGHT lines explaining how the implementation of structural adjustment programmes by international financial institutions affected African countries.
Answer
The implementation of structural adjustment programmes (SAPs) by international financial institutions like the IMF and World Bank significantly affected African countries. Initially aimed at stabilizing economies, these programmes often led to cuts in essential public services, which disproportionately impacted the vulnerable populations. As countries were pressured to open markets and privatize industries, many faced economic crises exacerbated by increasing debt burdens. Furthermore, the social fabric of societies frayed as employment opportunities dwindled, and growing inequality became apparent. While intended to foster growth, the actual experience often resulted in deepening poverty and social unrest, prompting calls for debt cancellation and a reevaluation of economic policies.