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Title: AN ASSESSMENT OF SUB-SAHARAN AFRICA DEBT PERFORMANCE AFTER THE DEBT RELIEF INITIATIVE
Authors: Abubakar Sadiq Saleh, Abbas Umar Ibrahim
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1Abubakar Sadiq Saleh, 2Abbas Umar Ibrahim 1. Dept. of Banking and Finance, University of Abuja, Nigeria 2. Dept. Business Administration, Nile University, Nigeria
MLA 8 Saleh, Abubakar Sadiq, and Abbas Umar Ibrahim. "AN ASSESSMENT OF SUB-SAHARAN AFRICA DEBT PERFORMANCE AFTER THE DEBT RELIEF INITIATIVE." Int. j. of Social Science and Economic Research, vol. 5, no. 6, June 2020, pp. 1433-1448, ijsser.org/more2020.php?id=100. Accessed June 2020. APA(6) Saleh, A., & Ibrahim, A. (2020, June). AN ASSESSMENT OF SUB-SAHARAN AFRICA DEBT PERFORMANCE AFTER THE DEBT RELIEF INITIATIVE. Int. j. of Social Science and Economic Research, 5(6), 1433-1448. Retrieved from ijsser.org/more2020.php?id=100 Chicago Saleh, Abubakar Sadiq, and Abbas Umar Ibrahim. "AN ASSESSMENT OF SUB-SAHARAN AFRICA DEBT PERFORMANCE AFTER THE DEBT RELIEF INITIATIVE." Int. j. of Social Science and Economic Research 5, no. 6 (June 2020), 1433-1448. Accessed June, 2020. ijsser.org/more2020.php?id=100.
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Abstract: By the turn of the new millennium, precisely during the late nineties, agitations for debt relief by rich nations and other creditor bodies to the low income ones climaxed in the creation of the Highly Indebted Poor Countries Initiative (HIPC). By the onset of the new millennium many poor countries had qualified for the initiative and benefitted from the relief. Debt relief can really free-up State funds for more developmental projects that can improve standard of living, help alleviate poverty and restore stability to the economy. It has however been argued that although the whole idea and process of debt relief was positively influenced by economic and institutional development, governments of creditor nations actually granted debt relief purely on political rather than economic considerations. The idea of path dependence was believed to be the reason behind the debt relief initiative (Freytag and Pehnelt, 2009). Others believe the whole idea behind debt relief is nothing more than an instrument of power at the disposal of rich creditor nations who control most of the international flow of capital corporations, and other international credit clubs such as the Paris club etc. Before qualifying for a debt relief debtor nations need to fulfil a series of conditions which turn out to be quite harmful to their economies and thereby endangering further their sovereignty and independence (Vallee and Vallee, 2005). The objective of this work is to carry out an assessment of the debt relief initiative among the countries in the sub-Saharan Africa. This assessment will be with a view to establishing the impact, if any, of the debt relief initiative on the economic performances of these countries. Data from the World Bank economic indicators; and the IMF world economic outlook would be utilised to form a causal relationship between debt relief and economic growth.

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