Leveraging Australia's Debt Relief to the Philippines Through Debt-for-Investment Projects

Abstract

This article proposes and analyses a 'debt-for-investment' project between the Australian and Philippine Governments as a means for Australia to enhance greatly the effectiveness of its debt relief and aid efforts for the Philippines. Debt-for-investment can serve the interests of the Australian and Philippine Governments and the poorest Filipino communities. This project would reduce the risk of transnational threats including terrorism and an avian flu epidemic and help the Philippines achieve the Millennium Development Goals ('MDGs') by 2015. It would also strengthen the existing relationship between Australia and the Philippines, and allow Australia to join the ranks of developed nations engaging in debt swaps with developing nations.

Keywords: Debt relief, Debt-for-investment projects, Debt-for-development exchanges