• Adjustment does not necessarily increase poverty • Adjusting before a crisis reduces social costs • Refusal to adjust and the suspension of imports leads to self-centred underdevelopment, which is socially much more costly • The choice of macroeconomic stabilisation measures is...

The paper describes the fiscal and balance-of-payments problems in Morocco emerging in 1976 and the government's adjustment policies. It then reviews the impact of adjustment in employment, primary incomes, household living standards, and poverty. The model and simulation results for the...