The external debt situation of African OIC member countries : the enhanced hipc scheme, new relief or new burdens

Poor countries' debts continued to figure prominently in the various international action programmes for LDCs. The recent years have witnessed a change in perception regarding the sustainability of HIPC debts. A near consensus emerged on the need to drop, cancel or refinance all HIPCs' non-sustainable debts. However, criteria of sustainability differ widely. In their estimations, the Bretton Woods institutions adopt the narrower definition of financial sustainability. NGOs and debt campaigners, on the other hand, call for a wider criterion that considers, in addition, socio-developmental factors of the HIPCs. Thus, while the enhanced version of the HIPC scheme has answered some of its earlier drawbacks, it remains inadequate to meet the prime aim for which it was launched. Instead, it brings in a set of new conditions, which complicate the issue further. Heeding these, the UN Secretary General proposed forming an independent body, which would not be unduly influenced by vested interests, to be entrusted with the process of assessment and evaluation. OIC countries and institutions should support this alternative approach. (J Eco Coop Isl Count/DÜI)