The Heavily Indebted Poor Countries (HIPC) Debt Initiative, designed to relieve the high external debt burdens of some of the poorest nations, was put in place by the World Bank and the IMF in 1996; an expanded, enhanced HIPC followed in 1999. With a more comprehensive approach to debt relief-including, for the first time, multilateral debt-the Initiative represents a major innovation in development finance. But is the Initiative likely to achieve...
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