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(solution) 1. In negotiating the HIPC Debt Initiative, the World Bank and


1. In negotiating the HIPC Debt Initiative, the World Bank and the IMF worked closely together. At one point, however, the plan came to a standstill when the two organizations produced different figures for Uganda's coffee exports, with the IMF giving a more optimistic forecast and so arguing against the need for debt relief. In your opinion, is there any benefit to these organizations working together? Explain. Which organization do you think should play a greater role in aiding economic development? Why? 2. The World Bank and the IMF had once argued that the IMF had once argued that the leniency of debt forgiveness would make it more difficult for the lenders themselves to borrow cheaply on the world's capital markets. If you were a World Bank donor, would you support the HIPC Debt Initiative or argue against it? Explain your answer.

 


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