Economic Prospects, Long Term Debt Sustainability and the Role of Investment

image of HIPCs
This paper provides a review of the economic prospects for HIPCs in the global context. Two issues in particular are discussed. First, the paper emphasises the importance of promoting export orientated investment that upgrades and sustains exports.

Second, it underlies the need to promote private participation in infrastructure. The paper was commissioned by the Commonwealth Secretariat as an input into the Commonwealth HIPC Ministerial Forum in March 2004, which was held in Freetown, Sierra Leone. It also includes the Ministerial Statement, which is attached as an Annex to the paper.




One of the key Commonwealth concerns since the early 1980s has been the debt problem facing poor countries. Over time, the Commonwealth has made a number of proposals which have contributed to the various debt reduction initiatives of the Paris Club and the launching of the Heavily Indebted Poor Countries (HIPC) Initiative in 1996 and its enhancement in 1999. Following the Commonwealth Finance Ministers Meeting in Malta in 2000, a forum, comprising mainly of Commonwealth HIPCs, was established to provide regular input into the shaping of the HIPC Initiative.


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