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Can HIPC Reduce Poverty in Tanzania?

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  • Danielson, Anders

    ()
    (Department of Economics, Lund University)

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    Abstract

    While 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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    File URL: http://swopec.hhs.se/lunewp/papers/lunewp2001_014.pdf
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    Bibliographic Info

    Paper provided by Lund University, Department of Economics in its series Working Papers with number 2001:14.

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    Length: 26 pages
    Date of creation: 22 Aug 2001
    Date of revision:
    Handle: RePEc:hhs:lunewp:2001_014

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    Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
    Phone: +46 +46 222 0000
    Fax: +46 +46 2224613
    Web page: http://www.nek.lu.se/en
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    Keywords: Tanzania; HIPC; debt; growth;

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