Structural Adjustment

In the 1980s and 1990s, The World Bank and IMF changed to the promotion of "structural adjustment."

Focus changed to emphasize reducing inefficiencies and promoting financial incentives.

Policies included selling off state owned enterprises and letting currencies and prices float to world market levels.

However, a series of compelling flaws, both in the theory and its execution undermined stage theories.  Not only did most nations fail to "develop," in many cases people became poorer.

But, does it matter? Foreign aid has been swamped by other financial transfers:

Foreign aid remains marginal, inconsistent, and overwhelmingly given to achieve specific political ends.

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