Adjustment policies and the environment: a critical review of the literature

Abstract

This paper reviews the recent literature and empirical evidence on this issue. Starting with a brief review of macroeconomic adjustment programmes (Section 2), it highlights the main criticisms made in terms of their economic efficiency, social equity and political support (Section 3). An overall review of the environmental consequences of economic policy reform is presented in Section 4. The links between debt, adjustment programmes and the environment are explored in more detail in Section 5, where empirical and country case studies are summarised. Finally, Section 6 presents the key conclusions of this review.