INTRODUCTION

Development economics can be divided into two broad categories which are “neoclassical economics” and “structuralism”. The structuralist sees the world as inflexible. Change is inhibited by obstacles, bottlenecks and constraints. People find it hard to move or adapt, and resources tend to be stuck. In economic terms the supply of most things is inelastic. Such general inflexibility was thought to apply particularly to Least Development Countries. Entrepreneurs were lacking; and communication was poor, this alleged inflexibility was married to the evident fact that production structure of developing countries was very different from that of developed countries. To achieve development it had to be changed rapidly.

The sturcturalist view of the world provides a reason for distrusting the price mechanism and for trying to bring about change in other ways. If supplies and demands are very inelastic large price changes are needed to achieve small quantitative adjustments. Large price changes are disturbing both directly and also because they result in changes in income distribution, if the losers are powerful they may be able to resist the change through organized industrial or political action. Structuralism primarily seeks to provide a reason for managing change through administrative action.

Structural adjustment is a term that is used to explain policy that are driving change in countries Economic relationships especially the World Bank and International Monetary Fund (IMF) towards developing countries. In one way or another are among the conditionalities imposed by the international organization, thus Structural Adjustment Programs (SAPs) these are programs implemented by IMF and World Bank in what is said as helping developing countries to survive in their economic failure but with conditions to abide to.

The main objective of structural adjustment programs (SAPS) is to make economic changes to Governments of developing countries but with conditions the IMF and World Bank grants loans to developing countries to make these economic changes in their Economies. Initially Structural Adjustment Programs (SAPs) was created as a method of economic recovery from the second world war (WWII) it was a mechanism for dealing with the balance of payment (BOP) problems that resulted from the second world war which its effects in world economies as there was massive economic recession of late 1970`s and 1980s by this time many developing countries were adopting socialist or command economy, therefore IMF and World Bank aim was to change these countries to the other form of economy that is change these countries to free market economy or commonly known as laissez fair it was not easy for the IMF and World Bank to change these countries as there could be resistance to change that is why the World Bank and IMF decided to implement these policies.

The main tools for economic changes which the IMF and World bank were implementing consisted of major changes in countries economic, the conditions imposed in order for the developing countries to get loans included the following:-

• Devaluation of currencies in relation to us dolla