The Evolution of Development Theory and Tourism - Tourism and Development: Concepts and Issues - page 50

developing countries identified the 'correct' combination of development
policies for sustained growth. These policies included a shift from agriculture
to industry and a change in consumer demand to manufactured goods and
services. The World Bank, the IMF and other international development
agencies invested large amounts of resources in Structural Adjustment
Lending Programmes (SALP) (Mosley & Toye, 1988). SALP are directed at
specific policy changes within the receiving countries. The objectives of
SALP focus on financial, macroeconomic and microeconomic adjustments,
which include: removing import quotas, reforming budgets, dissolving the
powers of state marketing boards, currency devaluation, reducing inflation,
downsizing public services, privatisation of public enterprises and export
promotion (Konadu-Agyemang, 2000; Mohan et al ., 2000; Mosley & Toye,
1988). The SALPs imply that the strategies of the international monetary
agencies will lead to the correct path of development (Singer & Ansari, 1992)
and it is the endogenous factors that serve as impediments to development
and not the exogenous factors that are problems as cited by those in the
dependency arena (Konadu-Agyemang, 2000). The SALP of the IMF and
neoliberal theory have strong links to monetarist economics. Monetarist eco-
nomics can be traced to equilibrium theorists of the late 19th and early 20th
centuries who advocated using interest rate adjustments for sustained eco-
nomic equilibrium with lower rates promoting increased growth. In addi-
tion, the quantity theory of money is central to monetarism. Macroeconomic
problems such as inflationary pressures and indebtedness of developing
countries are viewed as monetary problems as a result of excess government
spending and other demand stimulation, which has driven up the quantity
of money in the economy to an unsustainable level (Brohman, 1996b).
McKay (1990) argues that the dominant model, which prevails among
policymakers and among those controlling investment funds, is a global
model which supports the notion of 'one world'. Like other neoliberal appro-
aches towards development, this model stresses the efficiency of the free
market in the allocation of resources, deregulation and export orientation. It
attributes, however, even more importance to international money markets
in the 'one world' or global market. Neoliberals also support a monoeco-
nomic approach whereby the problems of developing countries are amenable
to general solutions based on standard economic principles rather than pro-
posing different solutions for developing countries (Brohman, 1996b).
Economic neoliberalism has been criticised for its financial strategies
(SALP) and being dominated by Western countries. SALPs have been criti-
cised for their national or regional outlook and, more specifically, for their
dire social implications, such as declining standards of living and growth of
poverty. It is argued that privileged groups who have access to resources
and key contacts can take advantage of the new outward economy while
the disadvantaged groups face a shrinking domestic economy, falling wages,
removal of labour regulations, rising prices for basic consumption and