Structural adjustment and stabilization in Niger : macroeconomic consequences and social adjustment

The SAP has generally been successful in improving Niger"s financial situation. However, the program has also been accompanied by changes in real incomes, consumer prices, and labor market conditions in both the rural and urban areas. Some of these changes have been the direct result of the SAP while others have resulted from exogenous influences on Niger"s economy, such as drought and economic policy changes in Nigeria, Niger"s principal trading partner. The purpose of this background paper is to describe the reform measures taken from 1983 to 1990. It also seeks to link these reforms to the situation of the economy as a whole and to the situation of different socioeconomic groups. A second objective of the study is to identify relevant data sources for the second stage of the Cornell Food and Nutrition Policy Program"s project in Niger. The paper is organized as follows. Section 2 begins with an overview of the economic background of the Nigerien economy, including information on rural and urban incomes, and on international trade. Next is a profile of the nutritional, educational, and health status of the population. Section 4 provides information on the economic situation in Niger that led to implementation of the SAP, and on the policies and reforms implemented under the SAP. Section 5 analyzes the trends in income, prices, and expenditures that have accompanied the SAP. This section also analyzes how the various income groups have fared, using data that currently exist. The final section provides conclusions and suggestions for further research. (Author abstract, modified)