Abstract

Sola Fajana * and Adejoke Ige

This study argues that, based on the Nigerian experience, there is a connection between IMF-type programmes and instability in some of the countries that adopted them. Structural supply- oriented policies such as reducing the size of the public sector and the removal of state resources from that sector to the private sector (privatization), creating financial intermediaries, promotion of savings, and discouragement of wasteful spending by increasing real interest rates all help to reduce the welfare of workers. Reactions of industrial workers to this deficiency, disappointment, and irritation are however smothered by the compulsion and suppression of state agencies.