debt relief bad for debtors

Max Sawicky sawicky at
Wed Aug 9 10:46:19 PDT 2000

Moreover, most of the heavily indebted poor countries (HIPC) have not, in fact, been servicing their debts voluntarily: these debts have either been rolled over or are in arrears. So debt forgiveness would not release resources when debt-servicing obligations would not have been paid.. . .

problem is, aid can be substituted out of its intended purpose too. There's a good-sized lit on this in the U.S. re: grants-in-aid to the states.

If Krueger had not elected to phone in this wisdom, she might have inquired into the circumstances wherein either debt relief or aid could be expected to change public spending, how, and by how much.


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