SAP’S refers to the policies introduced by IMF and WB in order to control the state budget and official policies in the LDCs; therefore the IMF and WB aimed at creating changes of the government budget so as to bring development in the developing countries.
Due to worsening economic conditions the developing countries especial in Africa in the mid of 1980s; approached the IMF and WB for Loans hence the IMF and WB suggested for SAPs to be in traduced in the developing countries as a solutions for their economic development. The major reasons for establishment of SAP’S in Developing countries are as follows:-
1. To solve external debts crisis in the developing countries especially in African States.
2. To promote rural development projects in order to improve the living standard of the rural people.
3. To improve the rapid decline of per capital income in order to make sure that people in the developing countries should have high per capital income.
4. To improve the rapid decline of G.N.P (Gross National Profit) in order to make sure that nations found in the developing countries should improve their national domestic product and avoid dependency from the developed countries.
5.To improve the decline of health services in order to make sure that government of the developing countries particularly in Africa should improve better social services to their people like hospitals educational facilities, clean water supply etc. Example availability of drugs in hospitals, dispensary or health centers, availability of equipment in hospitals and educational facilities i.e. books laboratory equipment etc.
6.To improve transport and communication networks in the developing countries in order to make sure that transport and communication networks is well available in the developing countries for development e.g. road ports, airports, railways etc.
7. To improve science and technology in the developing countries so as to remove the problem of weak science and technological base found in developing countries particularly in Africa and which has been acting as an obstacle for the development of developing countries.
8. To help the developing countries to get out of the poverty this is common problem in developing countries.