Inability of these countries in servicing the debt put the banks in a quandary and in order to save the banks, in order to ensure their fabulous profits the imperialist states with the help of their central banks and governments came up with a number of plans. To ensure the implementation of these plans the IMF attached such conditions to its so-called rescue packages that put enormous burden upon these countries. The Baker plan and the Brady plan are instances of such plans. They were chiefly meant for the Latin American countries. The 90s saw a number of such programmes which were imposed upon the countries of South East Asia and India among others. These programmes are known as Structural Adjustments Programmes. They come with a number of conditionalities which impose enormous burdens upon these countries and lead to the destruction of the productive capacities of these countries.
These involve severe cuts in welfare expenditure, cuts on subsidies to industry and agriculture, privatization of government companies and utilities, freedom for foreign capital investment and propitiation of speculative capital flows. On the whole, these programmes lead to massive impoverishment, unemployment and mass distress. These economies are made to integrate themselves closely with the world imperialist economy.
They are made to turn their economies into expert-oriented ones. The concern with maintenance of a healthy balance of payments becomes a major concern for only when the coffers of foreign exchange are sufficiently filled up can debt servicing is carried out. To his end, foreign capital investment has to be encouraged whether it is used for productive purposes or speculative purposes. Servicing of the debt becomes the most important concern. So we find that to ensure the profits of finance capital the 90s witnessed the destruction of productive forces. India too faces the same situation where industries are being closed down, retrenchments and lay-offs are common privatization is going on and it is facing the crisis of overproduction in the midst of poverty.