publication . Thesis

External debt and macroeconomic vulnerability: A proposal for state-contingent debt contracts to achieve low-income country debt sustainability.

Ferrarini, Benno;
Open Access English
  • Publisher: SOAS University of London
  • Country: United Kingdom
We argue that the 'New Debt Sustainability Framework' (DSF), as recently introduced by the Bretton Woods Institutions, is tailored to suit the aid allocation mechanism centred on the Country Policy and Institutional Assessment (CPIA), but fails to take into account low-income countries' economic vulnerability and exposure to exogenous shocks. As a result, the DSF further undermines the effective delivery of aid by the International Development Association (IDA), and fails to support recipient countries in their efforts to achieve lasting debt sustainability. Furthermore, we demonstrate that the findings of the empirical studies underlying the DSF and IDA14 reple...
free text keywords: SRT1
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