Indebted Poor Countries

After a massive international campaign calling attention to the development impact of foreign debt, the Heavily Indebted Poor Countries (HIPe initiative is now underway. But will the HIPC Initiative meet its high expectations? Will debt relief substantially raise growth? How do we make sure that debt relief benefits poor people? And how can we ensure that poor countries do not become highly indebted again? These are some of the key policy issues covered in this rigorous and independent analysis of debt, development, and poverty.

After a massive international campaign calling attention to the development impact of foreign debt, the Heavily Indebted Poor Countries (HIPC) initiative is now underway. But will the HIPC Initiative meet its high expectations? Will debt relief substantially raise growth? How do we make sure that debt relief benefits poor people? And how can we ensure that poor countries do not become highly indebted again? These are some of the key policy issues covered in this rigorous and independent analysis of debt, development, and poverty.

Heavily Indebted Poor Countries - Heavily Indebted Poor Countries (HIPC) are a group of the world's poorest countries which are the subject of an initiative seeking to bring their external debt to sustainable levels (see debt relief), subject to their governments meeting a range of economic management and performance targets.

Remittances from overseas - Remittances from overseas is money sent by immigrants from poor countries living in rich countries back to their native land. When such workers arive in wealthier countries, it can be expected that the overseas worker will support the extended family remaining in country.

International inequality - Economic differences between rich and poor countries are considerable. According to the United Nations Human Development Report 2004, the GDP per capita in countries with high, medium and low human development (a classification based on the UN Human Development Index) was 24,806, 4,269 and 1,184 PPP$, respectively (PPP$ = purchasing power parity measured in United States dollars).

Paris Club - The Paris Club is an informal group of financial officials from 19 of the world's richest countries, which provides financial services such as debt restructuring, debt relief, and debt cancellation to indebted countries and their creditors. Debtors are often recommended by the International Monetary Fund after alternative solutions have failed.

indebtedpoorcountries

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