Debt relief for the poorest : an evaluation update of the HIPC initiative / [team led by Shonar Lala ; Rupa Ranganathan, Brett Libresco].

Format:

Book

Government document

Author/Creator:

Lala, Shonar, 1973-

Contributor:

Ranganathan, Rupa.

Libresco, Brett.

World Bank. Independent Evaluation Group.

Language:

English

Subjects (All):

Debt relief--Developing countries.

Debt relief.

Developing countries.

Debts, External--Developing countries.

Debts, External.

Physical Description:

xv, 77 pages : illustrations ; 28 cm

Place of Publication:

Washington, D.C. : World Bank, 2006.

Summary:

This study evaluates progress under the HIPC initiative since IEG's 2003 evaluation. It finds that the Enhanced HIPC initiative cut debt ratios in half for 18 countries, but in eight of these countries, the ratios have come to once again exceed HIPC thresholds. Debt reduction alone is not a sufficient instrument to affect the multiple drivers of debt sustainability. Sustained improvements in export diversification, fiscal management, the terms of new financing, and public debt management are also needed, measures that fall outside the ambit of the HIPC initiative.

Contents:

2 Delivery of Debt Relief 9

3 Prospects for Debt Sustainability 15

4 Policy Performance and Poverty Reduction 25

5 Findings 33

A Guide to the HIPC Initiative 37

B Extensions of the Deadline for HIPC Eligibility, 1998-2004 39

C Country Groupings 41

D Comparison of Economic Projections to Historical Trends 43

E Debt Indicators and Sustainability Assessments in Eight Post-Completion-Point Countries 45

F Countries with Macroeconomic Slippages or Delays Since Completion Point 51

G Achievement and Waivers of Completion Point Conditions 53

H Measures of Policy Performance 55

I Performance on Governance Indicators 63

J Titles for Further Reading 65

1.1 Findings from the 2003 Evaluation 5

1.2 Findings from the 2003 Evaluation: Objectives and Design 6

2.1 Findings from the 2003 Evaluation: Debt Relief Commitment and Additionality 9

3.1 Findings from the 2003 Evaluation: Debt Sustainability Analyses 15

3.2 Findings from the 2003 Evaluation: Debt Sustainability Prospects 18

3.3 Export Diversification, Highly Concessional Financing, and Prudent Debt Management Are Keys to Long-Term Debt Sustainability in Eight Countries 22

4.1 Findings from the 2003 Evaluation: Maintaining Policy Performance 25

4.2 Poverty Focus of National Strategies Has Improved, but Better Customization Is Needed 32

1.1 Status of Countries under the Enhanced HIPC Initiative, February 2006 4

3.1 New DSAs for Low-Income Countries Use Flexible Benchmarks While HIPC DSAs Use Uniform Thresholds 16

3.2 Projections Exceed Historical and Actual Growth Rates 18

3.3 Post-Completion-Point Countries' Debt Ratios Have Regressed 19

4.1 Post-Completion-Point Countries Had the Fastest Growth in Recent Years 26

4.2 Most HIPC Countries Require Substantial Upgrading in Public Expenditure Management 29

4.3 Post-Completion-Point Countries: Modest Progress on MDGs, but Data Are Limited 32

2.1 Creditors' Commitments to HIPC Debt Relief 10

2.2 Net Transfers to HIPC Countries Have Increased Since 2000 12

2.3 HIPCs' Share of Aid Keeps Growing 12

3.1 More Recent Projections Are Less Optimistic 17

3.2 Why Have Post-Completion-Point Debt Ratios Risen? 20

3.3 Five Countries Are Projected to Exceed the 150 Percent Threshold of Debt to Exports Beyond Completion Point 21

3.4 Guyana Is Projected to Exceed 250 Percent Threshold of Debt to Revenues Beyond Completion Point 21

4.1 All IDA-Only Countries Have Improved Since 1999, and Post-Completion-Point Countries Score Highest 27

4.2 Countries Not Yet at Decision Point Have the Worst Governance Indicators of All Low-Income Countries 27

4.3 Decision-Point Countries Have Worse Economic Performance Now Than in 2001 28

4.4 Debt Service and Management Capacity Have Worsened in All Low-Income Countries 29

4.5 Spending on Education as a Share of GDP Has Increased Significantly in Five HIPC Countries 31

4.6 Spending on Education as a Share of Government Expenditures Has Increased Significantly in Five HIPC Countries 31.

Notes:

Authors from acknowledgements.

"World Bank Independent Evaluation Group."

Includes bibliographical references (pages 75-77).

ISBN:

0821366564

OCLC:

68417012

Publisher Number:

9780821366561