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Does the Heavily Indebted Poor Countries (HIPC) Initiative Realize its Goal of Poverty Alleviation?
Clair APODACA,Pamela BLACKMON 연세대학교 빈곤문제국제개발연구원 2016 Journal of Poverty Alleviation and International D Vol.7 No.1
The development of the Enhanced Heavily Indebted Poor Countries Initiative (HIPC) with the addition of country developed Poverty Reduction Strategy Papers (PRSPs) in 1999, represents a fundamental shift in International Monetary Fund and World Bank programs. The HIPC initiative was designed to re-direct resources (through bilateral and multilateral debt forgiveness) that had previously gone to servicing a country's debt towards country- specific poverty reduction programs aimed at social services such as health care and education. This article investigates whether HIPC countries have seen results in poverty alleviation. We provide statistical support for the conclusion that successful completion of the HIPC process has benefits for poverty eradication. The HIPC initiative is positively related to a reduction in infant mortality, and to a decrease in the poverty gap.