Real wages in developing countries, like Zambia, are often inflexible due to factors like workers demanding higher wages and governments being generous in meeting these demands. This can make it challenging to implement economic programs recommended by organizations like the IMF and World Bank. Measures to control wage growth are often necessary after currency devaluations. However, in the 1980s, real wages in developing countries decreased, even in places with strong labor unions. This raised questions about the extent to which institutional factors influence real wage levels.