Economics- SAPs

Topics: Economics, Structural adjustment, Labour economics Pages: 10 (2150 words) Published: December 8, 2013
LABOUR COOPERATION UNDER STRUCTURAL ADJUSTMENT
IN HEALTH AND EDUCATION

THESIS SUMMARY SUBMITTED IN FULLFILMENT OF THE
REQUIREMENT FOR THE AWARD OF A MASTERS OF ARTS DEGREE IN
ECONOMICS.

BY HASSAN T. KASOLO.
2003

INTRODUCTION

Organizations in Uganda and those who work there, have for a considerable time now suffered from enormous stress. The long term causes appear to be a complex mixture of external and internal factors. The former is exemplified by the international debt crisis and the latter by lack of accountability and the frustrated aspirations of the workers who populate the organizations. Workers within the appropriate age bracket trace the substantive date of the ‘unprecedented’ organizational stress to the first year of Obote ii regime (1981). More exact observers pinpoint to the first phase of the Stabilization and Structural Adjustment programme (SAPs) initiated in 1980 when the annual wage declined by 26% to rank as the worst decline in ILO countries (Mamdani, 1989).

A familiar scenario in Africa countries such as Nigeria, Uganda or Zambia, that have introduced SAPs is the failure of organization to look after their employees; salaries are less than a living wage and other basic necessities such as adequate health allowance are not covered. There is a break in the psychological contract between employer and employee accompanied by frustrated aspirations, diminished organizational commitment and institutionalized and non institutionalized corruption at all levels. Office resources are frequently privatized and marketed elsewhere. Clientele may privately request to be served quickly for a free or the public servant withholds the service unless a private fee is paid.

Several facts conjectures are now emerging regarding SAPs in Sub Saharan Africa (SSA): SAPs, as currently applied, are overwhelmingly technical marginally institutional so that the programmes

are insensitive to local contexts (Standing, 1991).

The characteristics of

economies in sSA are such that SAPs take longer to mature, if at all, so that measures that would considered counter to the macroeconomic policy need to be taken before equilibria are restored. These measures are required to protect income (see for instance Robison, 1991) as well as other negative impacts (Standing, 1991).

Most of the economic problems of sSA are essentially structural in achieve very little in the long term while creating severe inflationary effects in the short term (Standing, 1991).

Macro

economic management of economic growth and stabilization cannot be understood without a proportional understanding of the behaviour of enterprises, workers, and consumers. It is these

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actor’s ability to respond to changes that influence the effectiveness of the economy in making use of projected opportunities (Anjad and Edgreen, 1991). The study proceeds by outlining the problem and the model suggested to examine it. It then describes the characteristics of the labour market in sub Saharan Africa (sSA). The methodology, analysis and discussion of the data, conclusions and recommended policy follow in this order.

THE PROBLEM

A central concern of this study is the supply of discretionary cooperation (Barnard, 19138; North, 1990; Organ, 1990), here understood as organization citizenship behaviour (Organ, 1990) Discretionary cooperation refers to workers’ behaviours that their superiors are not in position to demand or to enforce but which are essential for the success of an enterprise or organization (Organ, 1990; North, 1990). In examining this micro-level behaviour we will initially accept the fundamental neo-classic macro economic position of enthroning the market and leaving it to determine and control micro-level behaviour. The study will then seek to show that labour markets in sub Saharan Africa (SSA), Uganda in particularly, are not expected to behave according to prediction. That even when constraints and incentives are...
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