Prospective aid and indebtedness relief: A proposal
Primary needs of human development are not met in poor development countries.Although ambitious goals have been set by the international community to meet specific human development targets by 2015, Official Development Aid is lagging and excessive external debt continues to drain much needed resources from poor countries despite the recent HIPC (Highly Indebted Poor Countries)Initiative. This paper outlines a 15-year program for implementing the 2015 Human Development targets while resolving fully the debt overhang problem for a set of 49 poor countries. The proposal requires additional contributions from 23rich countries amounting to 0.1 of 1% of their GDP over each of the 15y ears. Although only a small part of the effort would take the form of debt cancellation, the outstanding debt of the 49 poor countries would be totally extinct by year 2015. The program, to be implemented in a multilateral framework in which all interested parties have an effective voice, relies on several basic premises: a long term commitment by donors; a fair burden sharing among creditors; a fair distribution of newly available resources among poor countries, heavily indebted or not; a targeting of these resources to human development programs; a conditionality guaranteeing reasonable aid effectiveness.
(This abstract was borrowed from another version of this item.)
|Date of creation:||May 2000|
|Date of revision:|
|Contact details of provider:|| Postal: Prinsstraat 13, B-2000 Antwerpen|
Web page: https://www.uantwerp.be/en/faculties/applied-economic-sciences/
More information through EDIRC
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.:
- Jeremy Bulow & Kenneth Rogoff, 1991.
"Sovereign Debt Repurchases: No Cure for Overhang,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 106(4), pages 1219-1235.
- Jeremy Bulow & Kenneth Rogoff & Afonso S. Bevilaqua, 1992. "Official Creditor Seniority and Burden-Sharing in the Former Soviet Bloc," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 195-234.
- Sachs, Jeffrey D, 1990. "A Strategy for Efficient Debt Reduction," Journal of Economic Perspectives, American Economic Association, vol. 4(1), pages 19-29, Winter.
- Easterly, William, 1999. "How did highly indebted poor countries become highly indebted? : reviewing two decades of debt relief," Policy Research Working Paper Series 2225, The World Bank.
- Renard, Robrecht & Cassimon, Danny, 2001. "On the Pitfalls of Measuring Aid," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Jeffrey Sachs, 1986. "Managing the LDC Debt Crisis," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 17(2), pages 397-440.
- Buiter, Willem H. & Srinivasan, T. N., 1987. "Rewarding the profligate and punishing the prudent and poor: Some recent proposals for debt relief," World Development, Elsevier, vol. 15(3), pages 411-417, March.
- Claessens, Stijn, et al, 1997. "HIPCs' Debt Review of the Issues," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 6(2), pages 231-54, July.
- Peter S. Heller & Sanjeev Gupta, 2002. "Challenges in Expanding Development Assistance," IMF Policy Discussion Papers 02/5, International Monetary Fund.
- Collier, Paul & Dollar, David, 2000.
"Can the world cut poverty in half ? how policy reform and effective aid can meet international development goals,"
Policy Research Working Paper Series
2403, The World Bank.
- Collier, Paul & Dollar, David, 2001. "Can the World Cut Poverty in Half? How Policy Reform and Effective Aid Can Meet International Development Goals," World Development, Elsevier, vol. 29(11), pages 1787-1802, November.
- Bulow, Jeremy & Rogoff, Kenneth, 1990. "Cleaning Up Third World Debt without Getting Taken to the Cleaners," Journal of Economic Perspectives, American Economic Association, vol. 4(1), pages 31-42, Winter.
- Buiter, Willem & Kletzer, Kenneth & Srinivasan, T. N., 1989. "Some thoughts on the Brady plan: Putting a fourth leg on the donkey?," World Development, Elsevier, vol. 17(10), pages 1661-1664, October.
- W. Max Corden, 1988. "An International Debt Facility?," IMF Staff Papers, Palgrave Macmillan, vol. 35(3), pages 401-421, September.
- Raffer, Kunibert, 1990. "Applying chapter 9 insolvency to international debts: An economically efficient solution with a human face," World Development, Elsevier, vol. 18(2), pages 301-311, February.
- Filmer, Deon & Pritchett, Lant, 1999. "The impact of public spending on health: does money matter?," Social Science & Medicine, Elsevier, vol. 49(10), pages 1309-1323, November.
- Claessens, Stijn & Diwan, Ishac, 1994. "Recent experience with commercial bank debt reduction: Has the "menu" outdone the market?," World Development, Elsevier, vol. 22(2), pages 201-213, February.
When requesting a correction, please mention this item's handle: RePEc:ant:wpaper:2000012. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joeri Nys)
If references are entirely missing, you can add them using this form.