Debt Relief and Growth: A Study of Zambia and Tanzania

Abstract

The issue of debt relief was hotly debated during the 1990s, and extensive debts have been considered to cripple the growth prospects of particularly the poorest least developed countries (LDCs). The Heavily Indebted Poor Countries (HIPC) Initiative is an attempt to provide comprehensive debt relief to the poorest and most indebted countries. The World Bank and the IMF launched the first version (HIPC I) in 1996. In 1999 it was enhanced following global consultations in Cologne, where it was considered necessary to provide more extensive and faster debt relief with clearer links to poverty reduction (HIPC II). 1 These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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