Debt Relief, Additionality, and Aid Allocation in Low Income Countries

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Debt Relief, Additionality, and Aid Allocation in Low Income Countries

Author Info

Robert Powell

Abstract

This paper models the resource implications of debt relief provided to low-income countries (LICs). Obtaining debt relief does not necessarily lead to individual aid-dependent countries receiving more overall resources from the donor community. Preliminary cross-section estimates suggest that debt relief provided to low-income countries in the period 1996 2000 neither crowded out other non-debt relief-related aid flows to the debtors concerned nor created significant extra net resources for those countries. While it is too early to fully assess the resource implications of the enhanced HIPC Initiative, this paper provides a possible approach to such an evaluation.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 03/175.

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Length: 21 pages
Date of creation: 07 Oct 2003
Date of revision:
Handle: RePEc:imf:imfwpa:03/175

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Graham Bird & Dane Rowlands, 2005. "The IMF and the Mobilization of Foreign Aid," Department of Economics Discussion Papers 1105, Department of Economics, University of Surrey. [Downloadable!]
Other versions:
- Graham Bird & Dane Rowlands, 2007. "The IMF and the mobilisation of foreign aid," The Journal of Development Studies, Taylor and Francis Journals, vol. 43(5), pages 856-870. [Downloadable!] (restricted)

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