Analyzing the Poverty Impact of the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative in Bolivia

Abstract

The purpose of this article is to analyse the impact of debt relief programs on poverty reduction in Bolivia by focusing on the enhanced HIPC initiative. As this initiative tries to reduce poverty in a decentralized way, I concentrate my analysis on the link between poverty reduction and the enhanced HIPC initiative resources at the municipal level. In order to do that, I study the specific impact of debt relief on the evolution of two poverty indicators (the schooling and achievement rates) over the 2001-2005 period. I conclude that the released resources under the enhanced HIPC initiative did not affect the evolution of these poverty indicators over the period.Bolivia; Debt Relief; Enhanced HIPC Initiative; Poverty; Decentralisation