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Can HIPC Reduce Poverty in Tanzania?

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  • Danielson, Anders

    () (Department of Economics, Lund University)

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.

Suggested Citation

  • Danielson, Anders, 2001. "Can HIPC Reduce Poverty in Tanzania?," Working Papers 2001:14, Lund University, Department of Economics.
  • Handle: RePEc:hhs:lunewp:2001_014
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    File URL: http://swopec.hhs.se/lunewp/papers/lunewp2001_014.pdf
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    More about this item

    Keywords

    Tanzania; HIPC; debt; growth;

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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