Structural adjustment with a human face (United Nations)

The accent on restoring macro-economic equilibria has shifted discussion from long-term goals of human development to short-term concerns in which structural adjustment programmes are accompanied by austerity measures which have resulted in neglect of human resources development and human development, and in increased poverty and inequality. Adjustment with a human face as promoted by UNICEF combines the promotion of economic growth with the protection of the vulnerable and macro-economic adjustment.

Why focus on adjustment rather than development ? Adjustment policy is the dominating economic preoccupation for setting the frame and constraints within which all other economic and development issues have to be considered. The issue should not be adjustment or growth, but adjustment for growth. The need for more growth-oriented adjustment policies has been widely recognized. The UNICEF study recognizes that the primary cause of the downward economic pressures on the human situation in most of the countries affected is the overall economic situation, globally and nationally, not adjustment policy as such. Indeed, without some form of adjustment, the situation would often be far worse. However, many past adjustment policies have been inadequate. There is a recognized need for broader approach to adjustment - satisfactory adjustment involves restructuring the economy so that major imbalances are eliminated at a desirable level of output, investment and human needs protection, while keeping the economy in shape for future growth and sustained development.