The paradox of debt is that heavily indebted poor countries (HIPCs) became heavily indebted after two decades of debt relief efforts. Average policies in HIPCs 1980-97 were worse than other less-developed countries (LDCs), controlling for income. Terms of trade and wars do not show a different trend in HIPCs than in non-HIPC LDCs. Financing HIPCs shifted away from private and bilateral nonconcessional sources toward International Development Assistance and other multilateral concessional financing-but this implicit form of debt relief also failed to reduce net present value debt. The record is not encouraging for the success of current debt relief efforts.
- Foreign aid
- International Organizations
- World Bank/IMF policies
ASJC Scopus subject areas
- Geography, Planning and Development
- Sociology and Political Science
- Economics and Econometrics