Poverty Of A Indebted Poor Countries ( Hipc ) A Project By...

INTRODUCTION This paper looks at the Highly Indebted Poor Countries (HIPC) a project by the IMF and World Bank. DEBT RELIEF KEY TO POVERTY REDUCTION The World Bank and International Monetary Fund (IMF) with its view that no poor country faces a debt burden that it cannot manage, came up with an initiative in 1996 called HIPC initiative. Since then, the International financial community and the multilateral organizations and governments have worked tirelessly together to reduce external debt to sustain levels for the many Highly Indebted Poor Countries. The World Bank and its partner IMF believes that poverty reduction will come by reducing debt levels of the country. NEGATIVE OUTCOMES OF HIPC INITIATIVES ON ZAMBIA The World Bank and the IMF, almost always put conditions to members states to access financial assistance. HIPC countries like Zambia were not an exceptional. Four conditions were put in place for HIPC to meet, this includes: 1. be eligible to borrow from the World Bank s International Development Agency. 2. Face an unsustainable debt burden, that cannot be sustain through traditional mechanism debt relief. 3. Have established a track record of reforms and sound policies. 4. Develop a Poverty Reduction Strategic Paper The technicalities behind the above conditions came at a price, which to date, a little of progress has been seen. Civic leaders under the leadership of President Levy Mwanawasa of the Republic of Zambia, were on each other s tails.Show MoreRelatedInternational Monetary Fund And The World Bank1679 Words   |  7 PagesTHE WORLD BANK AND IMF - HIPC International Monetary Fund and The World Bank, though has a good purpose of their existence, they have come under lots of criticisms as to how they use the leverage of being in a position of helping poor countries to either recover from economic collapse or give them debt relief and economic boost from loans they give out to them to impose policies and condition that those poor countries has to implement. 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