Abstract
Additionality. in the sense that debt relief should supplement, not replace, the flow of development aid is a key concept underlying the HIPC Initiative. But assessing the additionality of HIPC debt relief is extremely difficult, if not outright impossible. Some writers (e.g. Birdsall and Williamson, 2002), expect only modest additionality from bilateral donors while they doubt that debt relief from the World Bank can be additional. This leaves the IMF as the main contributor of additional resources.
I am grateful to Carl-Johan Dalgaard for numerous discussions that turned an idea at large into the present study, to Peter Hjertholm for his encyclopaedic knowledge about external debt in developing countries and to Jens Kovsted and John Rand for their sharp comments.
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Hansen, H. (2004). The Impact of External Aid and External Debt on Growth and Investment. In: Addison, T., Hansen, H., Tarp, F. (eds) Debt Relief for Poor Countries. Studies in Development Economics and Policy. Palgrave Macmillan, London. https://doi.org/10.1057/9780230522329_7
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DOI: https://doi.org/10.1057/9780230522329_7
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