IMF Working Papers

Debt Relief, Additionality, and Aid Allocation in Low Income Countries

By Robert Powell

September 1, 2003

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Robert Powell. Debt Relief, Additionality, and Aid Allocation in Low Income Countries, (USA: International Monetary Fund, 2003) accessed November 12, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper models the resource implications of debt relief provided to low-income countries (LICs). Obtaining debt relief does not necessarily lead to individual aid-dependent countries receiving more overall resources from the donor community. Preliminary cross-section estimates suggest that debt relief provided to low-income countries in the period 1996 2000 neither crowded out other non-debt relief-related aid flows to the debtors concerned nor created significant extra net resources for those countries. While it is too early to fully assess the resource implications of the enhanced HIPC Initiative, this paper provides a possible approach to such an evaluation.

Subject: Aid flows, Asset and liability management, Debt reduction, Debt relief, Debt service payments, External debt, Foreign aid

Keywords: Ability to pay, Additionality, Aid, Aid flows, Aid receipt, Aid-disbursement decision, Debt forgiveness, Debt reduction, Debt relief, Debt service payments, Debt-relief initiative, Global, HIPCs, Low-income countries, ODA flow, Recipient country, Resource transfer, WP

Publication Details

  • Pages:

    22

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2003/175

  • Stock No:

    WPIEA1752003

  • ISBN:

    9781451858778

  • ISSN:

    1018-5941

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