Can HIPC Reduce Poverty in Tanzania?
AbstractWhile growth has increased in Tanzania during the past five or six years, it is still too low to have a visible impact on poverty. Indeed, recent evidence suggests that the amount of both income and non-income poverty are roughly the same as they were a decade ago. Since debt relief provided under HIPC will free government resources, the initiative will potentially help reduce poverty through larger government expenditures on social sectors. However, it is unlikely that Tanzania will be able to reach the situation projected in the Decision Point document; projections are extremely optimistic, and deviations from these are likely to lead to a rapid accumulation of debt, so debt sustainability – as reflected in the debt-to-export ratio – will not be met.
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Bibliographic InfoPaper provided by Lund University, Department of Economics in its series Working Papers with number 2001:14.
Length: 26 pages
Date of creation: 22 Aug 2001
Date of revision:
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Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
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Tanzania; HIPC; debt; growth;
Find related papers by JEL classification:
- F34 - International Economics - - International Finance - - - International Lending and Debt Problems
- F35 - International Economics - - International Finance - - - Foreign Aid
- O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
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