So-called structural adjustment programs or S.A.P.'s are loans provided by the World Bank and IMF to developing countries on the conditions that they open themselves up to privatization, liberalize their trade and investment policies and slash social spending among other austerity measures. The savings gleaned from spending cuts and the proceeds of privatization would then be funneled back to Wall Street to repay debts. In other words, public assets and social spending retroactively became collateral in the repayment of foreign loans.

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