Australian Development Gateway

The Australian Development Gateway (ADG) strives to support members of the development community in their efforts to reduce poverty and enhance sustainable development in the Asia Pacific region. The site has been created with participation from members of government, private, academia and non-government organisations. User feedback mechanisms have been incorporated to guide future directions of the site. The site is optimised for low bandwidth access to enable the widest participation throughout the Asia Pacific region.

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Development Effectiveness

Aid effectiveness, debt relief & public finance response: evidence from a panel of HIPCs (pdf 160kb)

This research paper analyses the effectiveness of debt relief to heavily indebted poor countries (HIPCs) as a form of aid. It looks at the impact of debt relief on various aspects public finances of HIPCs, such as current expenditure, government investment, taxation and domestic borrowing. It also compares these impacts with the effects of other aid modalities such as grants and concessional loans.

The evidence in the paper suggests that debt relief initially reduces government investment, but the effects become positive after two years, and outperforms other modes of aid delivery.

This paper was researched and produced with the support of several donors including AusAID.

 

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