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The Political Economy of the Enhanced HIPC-Initiative

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  • Michaelowa, Katharina

Abstract

Only three years after its endorsement by the World Bank and the IMF, the Heavily Indebted Poor Country (HIPC)--Initiative was considerably altered and enhanced. This policy shift can be explained as a result of utility maximization behavior by national and international politicians, international bureaucrats and NGO. A politico-economic model suggests that the overall rise of HIPC default risk and the symbolic value of the year 2000 have been the two major determinants of changes in volume, eligibility, and conditionality requirements. Copyright 2003 by Kluwer Academic Publishers

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  • Michaelowa, Katharina, 2003. "The Political Economy of the Enhanced HIPC-Initiative," Public Choice, Springer, vol. 114(3-4), pages 461-476, March.
    • Handle: RePEc:kap:pubcho:v:114:y:2003:i:3-4:p:461-76
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    1. Birdsall, Nancy & Diwan, Ishac & Claessens, Stijn, 2002. "Will HIPC Matter? The Debt Game and Donor Behaviour in Africa," CEPR Discussion Papers 3297, C.E.P.R. Discussion Papers.
    2. Daniel Cohen, 2001. "The HIPC Initiative: True and False Promises," International Finance, Wiley Blackwell, vol. 4(3), pages 363-380.
    3. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September.
    4. Douglas Menzies, G., 2000. "Debt Forgiveness: the Case for Hyper-Incentive Contracts," Economics Series Working Papers 9937, University of Oxford, Department of Economics.
    5. Michaelowa, Katharina, 2003. "The Political Economy of the Enhanced HIPC-Initiative," Public Choice, Springer, vol. 114(3-4), pages 461-476, March.
    6. Howard White & Oliver Morrissey, 1997. "Conditionality When Donor And Recipient Preferences Vary," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(4), pages 497-505.
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    Cited by:

    1. Peter Hjertholm, 2004. "Explaining the Enhanced HIPC Initiative: A Response to Michaelowa (2003)," Public Choice, Springer, vol. 121(3), pages 481-483, February.
    2. Freytag, Andreas & Pehnelt, Gernot, 2009. "Debt Relief and Governance Quality in Developing Countries," World Development, Elsevier, vol. 37(1), pages 62-80, January.
    3. Freytag , Andreas & Pettersson, Jonatan & Schmied, Julian, 2016. "Debt Relief and Good Governance: New Evidence," VfS Annual Conference 2016 (Augsburg): Demographic Change 145914, Verein für Socialpolitik / German Economic Association.
    4. Cordella, Tito & Missale, Alessandro, 2013. "To give or to forgive? Aid versus debt relief," Journal of International Money and Finance, Elsevier, vol. 37(C), pages 504-528.
    5. Presbitero, Andrea F., 2008. "Debt Relief Effectiveness and Institution Building," MPRA Paper 12597, University Library of Munich, Germany.
    6. Anwar, Mumtaz, 2005. "The Political Economy of International Financial Institutions? Lending to Pakistan," HWWA Discussion Papers 338, Hamburg Institute of International Economics (HWWA).
    7. Þule AKKOYUNLU & Max STERN, 2018. "An empirical analysis of Diaspora bonds," Journal of Economics and Political Economy, KSP Journals, vol. 5(1), pages 57-80, March.
    8. Andreas FREYTAG & Julian SCHMIED, 2019. "Debt Relief And Good Governance: New Evidence Of Developing Countries For The Period 1990-2013," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 19(1), pages 15-32.
    9. Michaelowa, Katharina, 2003. "The Political Economy of the Enhanced HIPC-Initiative," Public Choice, Springer, vol. 114(3-4), pages 461-476, March.
    10. Sanford, Jonathan E., 2004. "IDA Grants and HIPC Debt Cancellation: Their Effectiveness and Impact on IDA Resources," World Development, Elsevier, vol. 32(9), pages 1579-1607, September.
    11. Axel Dreher, 2009. "IMF conditionality: theory and evidence," Public Choice, Springer, vol. 141(1), pages 233-267, October.
    12. Carsten Hefeker & Katharina Michaelowa, 2005. "Can process conditionality enhance aid effectiveness?," Public Choice, Springer, vol. 122(1), pages 159-175, January.
    13. Hefeker, Carsten & Michaelowa, Katharina, 2003. "Can Process Conditionality Enhance Aid Effectiveness? The Role of Bureaucratic Interest and Public Pressure," Discussion Paper Series 26389, Hamburg Institute of International Economics.
    14. William Akoto, 2013. "Do countries strategically improve their institutions to access increased debt relief?," Economics Bulletin, AccessEcon, vol. 33(2), pages 1185-1192.

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    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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