Restructuring, Structural Adjustment and All That

Abstract

The unsatisfactory performance of the South African economy during the past decade has generated a wide range of suggestions as to how this performance can be improved. This paper deals with some of the terminology that is used in this regard, particularly the terms “restructuring” and “structural adjustment”. Following Machlup, a variety of meanings of restructuring are distinguished, some of which can probably be conveyed more clearly by using other terms. Restructuring is also often simply a weasel word that has no real meaning. Structural adjustment, on the other hand, is generally a more precise term that refers to a specific set of policy measures. An examination of the South African debate reveals, however, that restructuring and structural adjustment are often used as synonyms. The focus in his debate ought to be on the actual measures that are required. Potentially meaningless or confusing terms like restructuring should be avoided as far as possible.