1. Policy Selectivity Forgone: Debt and Donor Behavior in Africa
- Author
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Nancy Birdsall, Stijn Claessens, and Ishac Diwan
- Subjects
BANK POLICY ,DEBT PROBLEMS ,TOTAL DEBT ,TAX ,DEBT DATA ,DEBT OVERHANG ,Financial system ,ECONOMIC GROWTH ,GROSS DOMESTIC PRODUCT ,DEBT FORGIVENESS ,PRINCIPAL REPAYMENT ,INFLATION ,CLASS OF CREDITOR ,Economics ,CREDITOR ,BILATERAL DONORS ,EXISTING DEBT ,FUTURE DEBT ,RULE OF LAW ,COMMERCIAL CREDITORS ,DEBT SERVICE ,DEBTOR CLASSES ,Debt overhang ,DEBT SERVICE REDUCTION ,DEBTOR ,INCOME SHOCKS ,AID EFFECTIVENESS ,DONOR RESOURCES ,DEBT REDUCTION PROGRAM ,ACTUAL DEBT ,CREDITOR BEHAVIOR ,INTEREST PAYMENT ,COMMERCIAL CREDITOR ,DEBT LEVELS ,SOVEREIGN DEBT ,Development ,INSTITUTIONAL CAPACITY ,STOCK OF DEBT ,CREDITORS ,MISREPORTING ,INTERNATIONAL FINANCE ,INDEBTED POOR COUNTRIES ,FACE VALUE OF DEBT ,EXTERNAL DEBT ,INTERNATIONAL FINANCIAL STATISTICS ,DEBT ACCUMULATION ,INDEBTEDNESS ,INDEBTED ,HIGHLY INDEBTED COUNTRIES ,GRANT PROGRAMS ,DEFAULTS ,BUDGET SURPLUS ,LOW DEBT ,MULTILATERAL CREDITORS ,HIGH DEBT ,International economics ,DUMMY VARIABLE ,FISCAL DEFICITS ,ARREARS ,DEBT ,CLAIM ,DEBT DISBURSEMENTS ,DEBT RESTRUCTURING ,DEBT STOCK VARIABLE ,INTEREST PAYMENTS ,DEBT REDUCTION ,COMMERCIAL DEBT ,MULTILATERAL DEBTS ,DEBT CATEGORIES ,DEBTS ,INDEBTED COUNTRIES ,RETURN ,TOTAL DEBT STOCK ,DEBT CLASSIFICATIONS ,DEVELOPMENT ASSISTANCE ,RECIPIENT COUNTRIES ,DISBURSEMENTS ,ECONOMIC ACTIVITY ,POLICY ENVIRONMENT ,MULTILATERAL DEBT ,DEBT RESCHEDULING ,DEFICITS ,RECIPIENT COUNTRY ,PORTFOLIO ,DEBT BUILDUP ,DEBT BURDENS ,INTERNATIONAL ECONOMICS ,DEBT TRAP ,MACRO-IMBALANCES ,FINANCIAL LIBERALIZATION ,INTERNATIONAL DEVELOPMENT ,DEBT COMPOSITION ,REPAYMENTS ,Debtor ,External debt ,CREDITWORTHINESS ,EQUAL AMOUNT ,Debt service coverage ratio ,DEBT STOCK ,Debt restructuring ,ECONOMIC REFORM ,GLOBAL DEVELOPMENT FINANCE ,Global Development Finance ,DEBT RELIEF ,ECONOMIC POLICIES ,JUDGMENT ,INSTITUTIONAL ENVIRONMENTS ,HIGH DEBTS ,Economics and Econometrics ,LEVELS OF DEBT ,BORROWING ,DUMMY VARIABLES ,POLICY RESPONSE ,POSITIVE COEFFICIENTS ,DEBT SERVICE PAYMENTS ,PRIVATIZATION ,PUBLIC POLICY ,TAX REVENUES ,INTERNATIONAL BANK ,Debt rescheduling ,Accounting ,DEBT STOCKS ,DEBT SERVICING ,DEPENDENT ,MONETARY FUND ,Debt ratio ,CREDITOR CLASS ,DEVELOPMENT BANK ,INVESTMENT BANK ,OLD DEBT ,POSITIVE COEFFICIENT ,INSTITUTIONAL ENVIRONMENT ,CLASSES OF CREDITORS ,FOREIGN AID ,ACCUMULATION OF DEBT ,PRESENT VALUE OF DEBT ,DEBT SERVICE RELIEF ,PRIVATE CREDITORS ,OUTSTANDING STOCK ,DEBT BURDEN ,DEBT CATEGORY ,DEBT CLASSIFICATION ,DEBT PROBLEM ,FACE VALUE ,DEBTORS ,LEVERAGE ,PRESENT VALUE ,Finance - Abstract
Authors assess the dynamics behind the high net resource transfers by donors and creditors to Sub-Saharan African countries. Analyzing the determinants of overall net transfers for a panel of 37 recipient countries in 1978-98, Authors find that country policies mattered little. Donors especially bilateral donors actually made greater transfers to countries with high debt, largely owed to multilateral creditors, when policies were 'bad'. Authors conclude that comprehensive debt relief has the potential, though not the certainty, to restore selectivity in support of good policies. That would make development assistance more effective going forward and increase public support in donor countries.
- Published
- 2003