“Burden of Debt” in HIPC Countries in the Light of Current Account Statistics |
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Authors: | Malte Krüger Florian Morath |
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Affiliation: | (1) Acting professor, chair of money and banking, University of Karlsruhe, Germany;(2) Research fellow, research unit Market Processes and Governance, Social Science Research Center Berlin (WZB), Germany |
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Abstract: | For many years, debt relief has been a prominent theme in public debate. Supporters of debt relief argue that debt service drains the resources of needy countries – resources which could be employed in such important areas as infrastructure, education and medical treatment. The question, however, whether foreign debt does, indeed, lead to a draining of resources is hardly ever addressed. |
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