Official Financing for Developing Countries
World Economic and Financial Surveys, August 2, 2001
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- Official Financing for Developing Countries
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Bibliographic details
- Published: August 2, 2001
- Series: World Economic and Financial Surveys
- DOI: https://doi.org/10.5089/9781589060388.083
Summary
- This paper reports an updated assessment of movements in official financing for developing countries during 1997–1999.
- The composition of official financing flows changed during this period, influenced by the Asian crisis.
- Debt relief is highlighted for its orientation toward poverty reduction and its potential contribution to raising living standards of the poorest.
Key findings on official financing flows and composition
- Member states of the Development Assistance Committee (DAC) increased official development financing from $73 billion in 1996 to $85 billion in 1999.
- New commitments by export credit agencies—a resource not included in the DAC figures—declined during 1997–1999, reflecting a slowing down in large-scale projects.
- The decline in export credit agency commitments is attributed to governments affected by the Asian financial crisis suspending or postponing a number of public sector projects.
Analysis of debt relief and poverty reduction
- Debt relief is characterized as an important contribution to international efforts to help raise the living standards of the poorest in the world.
- The success of debt relief is said to depend crucially on:
- the willingness of donor countries to increase resources for development aid, and
- linking donor resources to recipient countries’ poverty reduction strategies.