Will Hipc Matter? The Debt Game and Donor Behaviour in Africa

38 Pages Posted: 7 May 2002

See all articles by Nancy Birdsall

Nancy Birdsall

Center for Global Development

Stijn Claessens

Bank for International Settlements (BIS)

Ishac Diwan

World Bank - Ethiopia Office; National Bureau of Economic Research (NBER)

Date Written: April 2002

Abstract

In this Paper we focus on the question: Will the HIPC debt reduction program help in the transformation of the development assistance business and change the rules of the 'debt game' in Africa? We concentrate on the donor and official creditor side, by exploring how the growing debt of African countries, over the last two decades, has affected the provision of new resources by the donor community. Our results indicate, if debt levels are reduced sufficiently in high debt countries, that donors can shift from the current pattern of non-selectivity and defensive lending to a low debt regime - a regime that has in the past allowed selectivity in lending in relation to levels of poverty and quality of policy.

Keywords: Debt relief foreign aid, low-income countries, international organizations

JEL Classification: F34, F35, O11, O19

Suggested Citation

Birdsall, Nancy and Claessens, Stijn and Diwan, Ishac, Will Hipc Matter? The Debt Game and Donor Behaviour in Africa (April 2002). CEPR Discussion Paper No. 3297. Available at SSRN: https://ssrn.com/abstract=310475

Nancy Birdsall (Contact Author)

Center for Global Development ( email )

2055 L St. NW
5th floor
Washington, DC 20036
United States
202-416-0700 (Phone)

Stijn Claessens

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

Ishac Diwan

World Bank - Ethiopia Office ( email )

United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
37
Abstract Views
1,583
PlumX Metrics