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Title:Simulating the effects of debt relief in Zambia PDF Logo
Authors:Nokkala, Marko
Issue Date:2001
Series/Report no.:WIDER Discussion Papers // World Institute for Development Economics (UNU-WIDER) 2001/118
Abstract:The HIPC initiative for debt relief in the poorest countries has been extended to cover more countries. Zambia is one the countries accepted under the enhanced initiative for a debt relief of US$ 3.8 billion. In this paper, the possible effects of this debt relief are analysed using a social accounting matrix as a tool of analysis. Two alternative approaches were chosen: income transfers, and direct production support in the amount of the annual decrease in the debt service. Experiments show how debt service relief can contribute to national growth targets. They also show the different effects on household income, resulting from the alternative expenditure patterns. Income transfer scenario creates greater increase in the household income, at the expense of production value.
Subjects:HIPC initiative
Document Type:Working Paper
Appears in Collections:WIDER Discussion Papers, United Nations University (UNU)

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