Final answer:
The World Bank has supported Structural Adjustment Programs (SAPs), which include measures like deregulation and privatization, criticized for favoring lenders over borrowers in developing countries and potentially harming social welfare.
Step-by-step explanation:
The World Bank has been involved in various economic policies worldwide, but one of the most controversial policies it has supported is Structural Adjustment Programs (SAPs). These programs often include measures such as deregulation, privatization of public utilities, removal of trade barriers, currency devaluation, austerity measures to decrease budget deficits, elimination of social welfare programs, and focusing on resource extraction industries. The intent behind SAPs is to stimulate economic growth and reduce government deficits, but they have been met with criticism for being more beneficial to lenders in developed nations rather than borrowers in developing countries, potentially leading to negative impacts on public services and social welfare.
These policies are sometimes associated with the Washington Consensus, characterized by market fundamentalism or neoliberalism. Aspects of the Structural Adjustment Programs, such as reductions in trade deficits, public service cuts, and favoring foreign direct investment, have sparked debate about whether they are the most effective way to assist developing nations in achieving economic growth and poverty alleviation. Additionally, these programs have been criticized for putting financial and economic interests above social welfare and human rights, leading to concerns over their overall impact on the populations of financially vulnerable countries.