Evaluating the Participating Countries of the Heavily Indebted Poor Countries Initiative for Economic Growth

4944 Words Mar 26th, 2015 20 Pages
Evaluating the Participating Countries of the Heavily Indebted Poor Countries Initiative for Economic Growth |

Introduction:
Economic growth is vital to any countries livelihood. Economic growth within a country affects every industry, market, and household. In 1996, the World Bank, International Monetary Fund, and several other small creditors created the Heavily Indebted Poor Countries Initiative (HIPC) to help provide economic growth to poor and developing countries. The direct purpose of the Heavily Indebted Poor Countries Initiative was to offer low interest loans and debt relief to countries that meet the criteria for the initiative. Countries would have to be selected by criteria, which included, a countries past economic
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The poverty reduction strategy paper outlines how the country will plan to decrease poverty within the next decade. There is only one country that is currently at this point, that country is the Republic of Chad. (IMF, 2013)
The second step is the completion point. The completion point has three requirements each country must meet. The first step is to create a good performance record of supporting and prompting programs that the International Monetary Fund and the World Bank’s loans support. The second requirement is make key policy changes and implement policies that were agreed upon at the decision point. Lastly the third requirement is that implement and enforce the poverty reduction strategy paper with good performance for a least a year depending on the country’s history. As of March 2013, thirty-five countries had made it to the decision point. The countries are as follows Afghanistan, Benin, Bolivia, Burkina Faso, Burundi, Cameroon, Central African Republic, Comoros ,Congo, Cote d'Ivorie, Democratic Republic of the Congo, Ethiopia, Gambia, Ghana, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, Sao Tome and Principle, Senegal, Sierra Leone, Togo, Uganda, United Republic of Tanzania and, Zambia. (IMF, 2013) There are still countries that have failed to even

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