Debt Relief for Poor Countries

After a massive international campaign calling attention to the development impact of foreign debt, the Heavily Indebted Poor Countries (HIPC) initiative is now underway. But will the HIPC Initiative meet its high expectations? Will debt relief substantially raise growth? How do we make sure that debt relief benefits poor people? And how can we ensure that poor countries do not become highly indebted again? These are some of the key policy issues covered in this rigorous and independent analysis of debt, development, and poverty.

PART I: EVALUATING DEBT RELIEF Introduction; T.Addison, H.Hansen & F.Tarp Debt Dynamics and Contingency Financing: Theoretical Reappraisal of the HIPC Initiative; M.Nissanke & B.Ferrarini Policy Selectivity Forgone: Debt and Donor Behaviour in Africa; N.Birdsall, S.Claessens & I.Diwan HIPC Debt Relief and Policy Reform Incentives; J-C.Berthélemy Resolving the HIPC Problem: Is Good Policy Enough? T.Addison & A.Rahman PART II: GROWTH EFFECTS OF DEBT RELIEF External Debt and Growth: Implications for HIPC Countries; C.Pattillo, H.Poirson & L.A.Ricci The Impact of External Aid and External Debt on Growth and Investment; H.Hansen External Debt, Growth and the HIPC Initiative: Is the Country Choice Too Narrow?; A.R.Chowdhury Debt Relief and Growth: A Study of Zambia and Tanzania; A.Bigsten, J.Levin & H.Persson PART III: POVERTY EFFECTS OF DEBT RELIEF Public Spending and Poverty in Mozambique; R.Heltberg, K.Simler & F.Tarp Debt Relief, Demand for Education, and Poverty; E.Dabla-Norris, J.M.Matovu & P.Wade Making Debt Relief Conditionality Pro-Poor; O.Morrissey

JEAN-CLAUDE BERTHÉLEMY Professor of Economics, University of Paris 1 Pantheon Sorbonne, France ARNE BIGSTEN Professor of Development Economics, Göteborg University, Sweden NANCY BIRDSALL Founding President, Center for Global Development, Washington, USA ABDUR R. CHOWDHURY Director, Economic Analysis Division, United Nations Commission for Europe, Geneva, Switzerland STIJN CLAESSENS Professor of International Finance, University of Amsterdam, The Netherlands ERA DABLA-NORRIS International Monetary Fund, USA ISHAC DIWAN Company Director for Ethiopia and Sudan, World Bank, USA BENNO FERRARINI Director of Economic Research at the World Trade Institute, Switzerland RASMUS HELTBERG World Bank, USA JÖRGEN LEVIN Research Fellow, Örebo University, Sweden JOHN M. MATOVU International Monetary Fund, USA OLIVER MORRISSEY Director, Centre for Research in Economic Development and International Trade, University of Nottingham, UK MACHIKO NISSANKE Head of Economic Department, School of Oriental and African Studies, University of London, UK CATHERINE PATTILLO Senior Economist, International Monetary Fund, USA HÅKAN PERSSON Associate Professor of Economics, Örebo University, Sweden HÉLÈNE POIRSON Economist, International Monetary Fund, USA AMINUR RAHMAN PhD candidate in economics, University College, London, UK LUCA ANTONIO RICCI International Monetary Fund, USA KENNTH SIMLER Research Fellow, International Food Policy Institute, Washington, USA PAUL WADE World Bank,USA