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Curse or Blessing? Has the impact of debt relief lived up to expectations? A review of the effects of the multilateral debt relief initiatives for low-income countries

Author

Listed:
  • Marin Ferry

    () (EconomiX-CNRS, Université Paris Nanterre)

  • Marc Raffinot

    () (LEDa, UMR DIAL, université Paris-Dauphine)

Abstract

As the multilateral debt relief initiatives draw to a close, this article reviews the impacts of debt relief to low-income countries (LICs) building on both the theoretical and empirical literature of past decades. We show that, while the pioneering studies of the early 2000s are inconclusive, the most recent analyses overcome certain methodological impediments to highlight significant multilateral debt relief initiative effects. These analyses hence suggest that these large-scale programmes may well have met expectations, at least in part. _________________________________ (français) Alors que les initiatives multilatérales d’annulation de dette touchent à leur fin, cet article passe en revue les études empiriques et théoriques des dernières décennies visant à évaluer leurs impacts sur le développement des pays bénéficiaires. Cet article montre ainsi que malgré les résultats peu concluants des études du début des années 2000, des analyses plus récentes permettent d’apprécier les effets de ces programmes d’annulation de dette, surmontant ainsi les problèmes méthodologiques des articles antérieurs. Leurs résultats suggèrent que les initiatives d’annulation de dette pourraient bien avoir atteint leurs objectifs, du moins en partie.

Suggested Citation

  • Marin Ferry & Marc Raffinot, 2018. "Curse or Blessing? Has the impact of debt relief lived up to expectations? A review of the effects of the multilateral debt relief initiatives for low-income countries," Working Papers DT/2018/12, DIAL (Développement, Institutions et Mondialisation).
  • Handle: RePEc:dia:wpaper:dt201812
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    More about this item

    Keywords

    Debt relief; Financing for development; Low-income countries; Annulation de dette; Financement du développement; pays à faible revenu. E62; E61; F35; F64; H63.;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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