Author_Does the Heavily Indebted Poor Countries (HIPC) Initiative Realize its Goal of Poverty Alleviation?

Author_Clair APODACA & Pamela BLACKMON

Pages 1-38

Abstract_ The development of the Enhanced Heavily Indebted PoorCountries Initiative (HIPC) with the addition of country developedPoverty Reduction Strategy Papers (PRSPs) in 1999, represents afundamental shift in International Monetary Fund and World Bankprograms. The HIPC initiative was designed to re-direct resources(through bilateral and multilateral debt forgiveness) that hadpreviously gone to servicing a country’s debt towards countryspecificpoverty reduction programs aimed at social services suchas health care and education. This article investigates whetherHIPC countries have seen results in poverty alleviation. We providestatistical support for the conclusion that successful completion ofthe HIPC process has benefits for poverty eradication. The HIPCinitiative is positively related to a reduction in infant mortality, andto a decrease in the poverty gap.Keywords: HIPC initiative, Debt relief, Poverty alleviation, Infantmortality, World Bank, IMF

Keywords_ HIPC initiative, Debt relief, Poverty alleviation, Infant mortality, World Bank, IMF