Publication

This paper discusses initiatives to reduce debt burdens in heavily indebted poor countries (HIPC). It gives an overview of the present debt situations in HIPC countries and addresses reasons for the high debt levels. It analyzes the HIPC initiative’s contribution to resolving structural problems. The author then presents five proposals that may help these states reach debt sustainability. In the conclusion, the author states that on their own, low-income countries are unable to generate sufficient financial resources to reach the millennium development goals by 2015 and will therefore continue to be dependent on concessional donor credits and grants.