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Does the HIPC Initiative Achieve its Goal of Debt Sustainability?

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  • Bernhard G. Gunter

Abstract

This paper examines the question if the Heavily Indebted Poor Country (HIPC) Initiative provides a good basis for the HIPCs to exit from repeated debt rescheduling. Building on other reviews of the HIPC Initiative, the paper begins with a short summary of some key problems of the HIPC Initiative. It then reviews critically the growth assumptions of HIPC debt sustainability analyses, whereby the paper examines the changes in (i) public and private capital flows before and after the adoption of the HIPC Initiative, (ii) investment and savings rates, and (iii) sectoral transformations.

Suggested Citation

  • Bernhard G. Gunter, 2001. "Does the HIPC Initiative Achieve its Goal of Debt Sustainability?," WIDER Working Paper Series DP2001-100, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2001-100
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    1. Berthelemy, Jean-claude & Soderling, Ludvig, 2001. "The Role of Capital Accumulation, Adjustment and Structural Change for Economic Take-Off: Empirical Evidence from African Growth Episodes," World Development, Elsevier, vol. 29(2), pages 323-343, February.
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    6. Bernhard G. Gunter, 2002. "What’s Wrong with the HIPC Initiative and What’s Next?," Development Policy Review, Overseas Development Institute, vol. 20(1), pages 5-24, March.
    7. Peter Hjertholm, 1999. "Analytical History of Heavily Indebted Poor Country (HIPC) Debt Sustainability Targets," Discussion Papers 00-03, University of Copenhagen. Department of Economics.
    8. Abdelhak Senhadji, 2000. "Sources of Economic Growth: An Extensive Growth Accounting Exercise," IMF Staff Papers, Palgrave Macmillan, vol. 47(1), pages 1-6.
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    Cited by:

    1. Gunter, Bernhard & Wodon, Quentin, 2008. "Analyzing Debt Sustainability: Concepts and Tools Applied for Guinea, Rwanda,and Senegal," MPRA Paper 10648, University Library of Munich, Germany.
    2. Bernhard G. Gunter & A. F. M. Ataur Rahman, 2008. "Analyzing Bangladesh’s Debt Sustainability Using SimSIP Debt," Bangladesh Development Research Working Paper Series (BDRWPS) BDRWPS No. 2, Bangladesh Development Research Center (BDRC).
    3. Gunter, Bernhard & Wodon, Quentin, 2008. "Analyzing Debt Sustainability: An Application of SimSIP Debt for Paraguay," MPRA Paper 11076, University Library of Munich, Germany.
    4. Sanford, Jonathan E., 2004. "IDA Grants and HIPC Debt Cancellation: Their Effectiveness and Impact on IDA Resources," World Development, Elsevier, vol. 32(9), pages 1579-1607, September.
    5. Olav Bjerkholt, 2004. "New approaches to debt relief and debt sustainability in LDCs," CDP Background Papers 005, United Nations, Department of Economics and Social Affairs.
    6. Heylen, Fanny, 2010. "Analyzing the poverty impact of the enhanced Heavily Indebted Poor Countries (HIPC) initiative in Bolivia," Documentos de trabajo 1/2010, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.

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