Canada and structural adjustment in the South: the significance of the Guyana case

During the 1980s and early 1990s, the Canadian government became a strong supporter of IFI-designed Structural Adjustment Programmes (SAPs) for indebted Southern states, and altered its aid priorities accordingly. Despite the significance of this shift, however, little effort has been made to explain it theoretically. This paper addresses this gap through a case study of Canada's lead role in facilitating Structural Adjustment in Guyana. Several alternative theoretical explanations for Canada's role in North-South relations are set out. They are then applied to its role in Guyana. The authors argue that this case is best explained primarily through insights from a "historical materialist" approach, emphasizing the influence of hegemonic ideas and consensus, and secondarily a "middle power" approach, highlighting "niche-playing," multilateralism, and "bridge-building."