The Legacy of the Jubilee Debt Relief Movement: Agreements, Lessons, and Remaining Challenges : Center for Global Development : Publications

<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> <html xmlns="http://www.w3.org/1999/xhtml"> <head><script type="text/javascript" src="https://web-static.archive.org/_static/js/bundle-playback.js?v=7YQSqjSh" charset="utf-8"></script> <script type="text/javascript" src="https://web-static.archive.org/_static/js/wombat.js?v=txqj7nKC" charset="utf-8"></script> <script>window.RufflePlayer=window.RufflePlayer||{};window.RufflePlayer.config={"autoplay":"on","unmuteOverlay":"hidden"};</script> <script type="text/javascript" src="https://web-static.archive.org/_static/js/ruffle/ruffle.js"></script> <script type="text/javascript"> __wm.init("https://web.archive.org/web"); __wm.wombat("http://cgdev.org/content/publications/detail/1424540","20120107170547","https://web.archive.org/","web","https://web-static.archive.org/_static/", "1325955947"); </script> <link rel="stylesheet" type="text/css" href="https://web-static.archive.org/_static/css/banner-styles.css?v=p7PEIJWi" /> <link rel="stylesheet" type="text/css" href="https://web-static.archive.org/_static/css/iconochive.css?v=3PDvdIFv" />  <meta http-equiv="Content-type" content="text/html; charset=UTF-8"/> <title>The Legacy of the Jubilee Debt Relief Movement: Agreements, Lessons, and Remaining Challenges : Center for Global Development : Publications</title> <meta name="description" content="Independent research and practical ideas for global prosperity."/> <meta name="keywords" content=""/> <meta name="copyright" content="Center for Global Development"/> <link rel="icon" href="/web/20120107170547im_/http://cgdev.org/images/cgd_favicon.gif" type="image/gif"/> <link rel="stylesheet" type="text/css" href="/web/20120107170547cs_/http://cgdev.org/layout/style.css"/>    <link rel="stylesheet" type="text/css" href="/web/20120107170547cs_/http://cgdev.org/jquery/thickbox/thickbox.css"/> <script type="text/javascript" src="/web/20120107170547js_/http://cgdev.org/jquery/jquery-1.3.2.min.js"></script> <script type="text/javascript" src="/web/20120107170547js_/http://cgdev.org/jquery/thickbox/thickbox.js"></script> <script type="text/javascript"> jQuery(function() { jQuery("#home-blog ul").each(function() { jQuery(this).find("li:first a").css({"font-size": "17px", "font-weight": "bold"}); jQuery(this).find("li:last").css({"border-bottom": "0"}); }); jQuery("#sidebar ul").each(function() { jQuery(this).find("li:first a").css({"font-size": "14px", "font-weight": "bold"}); jQuery(this).find("li:last").css({"border-bottom": "0"}); }); jQuery("#home-in-the-news li:first a").css({"font-size": "17px", "font-weight": "bold"}); jQuery("#home-in-the-news li:last").css({"border-bottom": "0"}); jQuery("#home-multimedia li:first a").css({"font-size": "17px", "font-weight": "bold"}); jQuery("#home-multimedia li:last").css({"border-bottom": "0"}); jQuery(".tab").click(function() { jQuery(this).parent().find(".tab").removeClass("active"); jQuery(this).parent().parent().find(".tab-box").hide(); var active_box = jQuery(this).attr("rel"); jQuery(this).parent().parent().find(".tab-box."+active_box).show(); jQuery(this).addClass("active"); }); }); </script> </head> <body class="content publications detail 1424540"> <div id="header"> <div id="header-inner"> <table cellpadding="0" cellspacing="0" style="width:100%"> <tr> <td width="185"> <a href="/web/20120107170547/http://cgdev.org/"><img src="/web/20120107170547im_/http://cgdev.org/layout/cgd-logo.png" alt="CGD"/></a> </td> <td valign="bottom"> <div id="tagline">Independent research & practical ideas for global prosperity</div> </td> <td align="right"> <div id="header-nav"> <a style="font-weight: normal;" href="/web/20120107170547/http://cgdev.org/section/about/">About Us</a>   |   <a style="font-weight: normal;" href="/web/20120107170547/http://cgdev.org/section/about/onthehill/">On the Hill</a>   |   <a style="font-weight: normal;" href="/web/20120107170547/http://cgdev.org/section/about/presscenter/">Press Center</a>   |   <a style="font-weight: normal;" href="/web/20120107170547/http://cgdev.org/section/about_enews/">Subscribe</a>   |   <a style="font-weight: normal;" href="/web/20120107170547/http://cgdev.org/section/about/donate/">Invest</a> </div> <div id="search-bar"> <form method="get" action="/web/20120107170547/http://cgdev.org/section/search"> <input name="q" id="search-input" value="Search" onclick="this.value=''"/> <input type="submit" id="search-btn" value=""/> </form> </div> </td> </tr> </table> </div> </div> <div id="navbar"> <div id="navbar-inner"> <ul id="topnav"> <li class="nav_home"> <a href="/web/20120107170547/http://cgdev.org/" class="nav_item"><span>Home</span></a> </li> <li class="nav_topics"> <a href="/web/20120107170547/http://cgdev.org/section/topics" class="nav_item"><span>Topics</span></a> <div class="menu"> <ul class="sub_nav"> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/aid_effectiveness">Aid Effectiveness</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/capitalflows">Capital Flows/Financial Crises</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/climate_change">Climate Change</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/debt">Debt Relief</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/economicgrowth">Economic Growth</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/education">Education</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/finance">Finance</a></li> </ul> <ul class="sub_nav"> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/food_and_agriculture">Food and Agriculture</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/fragile_states">Fragile States</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/global_health">Global Health Policy</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/globalization">Globalization</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/governance">Governance/Democracy</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/inequality">Inequality</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/ifi">International Financial Institutions</a></li> </ul> <ul class="sub_nav"> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/migration">Migration and Development</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/population">Population and Development</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/poverty">Poverty</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/privateinvest">Private Investment</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/regions">Regions</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/technology">Technology</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/trade">Trade</a></li> <div class="clear"> </div> </div> </li> <li class="nav_initiatives"> <a href="/web/20120107170547/http://cgdev.org/section/initiatives" class="nav_item"><span>Initiatives</span></a> <div class="menu"> <ul class="sub_nav"> <li><a style="color: #FFFFFF;font-weight: bold;" href="https://web.archive.org/web/20120107170547/http://www.cgdev.org/section/initiatives">Active Initiatives</a></li><hr style="margin: 0 0 8px 0;"> <li><a href="/web/20120107170547/http://cgdev.org/section/initiatives/_active/cdi">2011 Commitment to Development Index</a></li> <li><a target="_new" href="https://web.archive.org/web/20120107170547/http://www.carma.org/">Carbon Monitoring for Action (CARMA)</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/initiatives/_active/codaid">Cash on Delivery (COD) Aid</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/initiatives/_active/drugresistanceglobalhealth">Combating Drug Resistance</a></li> </ul> <ul class="sub_nav"> <li><a href="/web/20120107170547/http://cgdev.org/section/initiatives/_active/forestmonitoringforactionforma">Forest Monitoring for Action (FORMA)</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/initiatives/_active/migration_data_commission">Improving Migration Data</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/initiatives/_active/migration_tool_disaster_recovery">Migration as a Tool for Disaster Recovery</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/initiatives/_active/revenues_distribution">Oil-to-Cash: Fighting the Resource Curse through Cash Transfers</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/initiatives/_active/pakistan">Pakistan: U.S. Development Strategy in Pakistan</a></li> </ul> <ul class="sub_nav"> <li><a href="/web/20120107170547/http://cgdev.org/section/initiatives/_active/preventingodiousobligations">Preventing Odious Obligations</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/initiatives/_active/reformingtradepreferences">Reforming Trade Preferences</a></li> <li><a href="/web/20120107170547/http://cgdev.org/section/initiatives/_active/assistance">Rethinking U.S. Foreign Assistance</a></li> <hr style="margin: 8px 0 0 0;"> <li><a style="color: #FFFFFF;font-weight: bold;" href="https://web.archive.org/web/20120107170547/http://www.cgdev.org/section/initiatives?itype=completed">Completed Initiatives</a></li> <div class="clear"> </div> </div> </li> <li class="nav_publications selected"> <a href="/web/20120107170547/http://cgdev.org/section/publications" class="nav_item"><span>Publications</span></a> </li> <li class="nav_blogs"> <a href="/web/20120107170547/http://cgdev.org/section/opinions/blogs" class="nav_item"><span>Blogs</span></a> </li> <li class="nav_experts"> <a href="/web/20120107170547/http://cgdev.org/section/experts" class="nav_item"><span>Experts</span></a> </li> <li class="nav_events"> <a href="/web/20120107170547/http://cgdev.org/section/events" class="nav_item"><span>Events</span></a> </li> <li class="nav_teach_learn"> <a href="/web/20120107170547/http://cgdev.org/section/for_educators" class="nav_item"><span>For Educators</span></a> </li> <li class="nav_opinions"> <a href="/web/20120107170547/http://cgdev.org/section/impact" class="nav_item"><span>Impact</span></a> </li> </ul> </div> </div> <div id="container"> <div id="breadcrumb"> <div style="float:right"> <a href="javascript:print()"><img style="vertical-align:bottom" src="/web/20120107170547im_/http://cgdev.org/layout/icon-print.png" title="Print" alt="Print"/> Print</a>     <a class="a2a_dd" href="https://web.archive.org/web/20120107170547/http://www.addtoany.com/share_save"><img src="https://web.archive.org/web/20120107170547im_/http://static.addtoany.com/buttons/favicon.png" width="16" height="16" border="0" alt="Share/Bookmark"/> Share</a><script type="text/javascript">a2a_linkname=document.title;a2a_linkurl=location.href;</script><script type="text/javascript" src="https://web.archive.org/web/20120107170547js_/http://static.addtoany.com/menu/page.js"></script> </div> <a href="/web/20120107170547/http://cgdev.org/"> Home</a> <img src="/web/20120107170547im_/http://cgdev.org/layout/breadcrumb-arrow.png" alt=""/> <a href="/web/20120107170547/http://cgdev.org/content/publications/"> Publications</a> <img src="/web/20120107170547im_/http://cgdev.org/layout/breadcrumb-arrow.png" alt=""/> The Legacy of the Jubilee Debt Relief Movement: Agreements, Lessons, and Remaining Challenges <div class="clear"></div> </div> <h1 class="title"> The Legacy of the Jubilee Debt Relief Movement: Agreements, Lessons, and Remaining Challenges </h1>  <table style="width:100%" cellpadding="0" cellspacing="0"> <tr> <td id="section-content" valign="top">  <div class="download-pdf"><a href="/web/20120107170547/http://cgdev.org/files/1424540_file_Leo_Jubilee_FINAL.pdf"><img style="margin-bottom: -1px;" src="https://web.archive.org/web/20120107170547im_/http://www.cgdev.org/layout/file_icons/icon_pdf.png"> Download (PDF,1.22 MB)</a>      <a target="_newfb" href="https://web.archive.org/web/20120107170547/http://www.facebook.com/sharer.php?u=http://www.cgdev.org/content/publications/detail/1424540/&t=The Legacy of the Jubilee Debt Relief Movement: Agreements, Lessons, and Remaining Challenges"><img style="position: relative;top: -1px;" src="/web/20120107170547im_/http://cgdev.org/layout/facebook_share.png"></a>  <a href="https://web.archive.org/web/20120107170547/http://twitter.com/share" class="twitter-share-button" data-count="horizontal" data-via="CGDev">Tweet</a></div> <p>Ben Leo</p> <p class="detailDate">10/27/2010</p> <a href="https://web.archive.org/web/20120107170547/http://www.cgdev.org/files/1424540_file_Leo_Jubilee_FINAL.pdf"><img src="/web/20120107170547im_/http://cgdev.org/userfiles/image/working_papers/leo_jubilee_cover.jpg" alt="name" width="200" height="259" class="bookcover left"/></a> <p> Over the last 25 years, the international community has pursued a series of measures to address unsustainable debt burdens in low-income countries. Early actions focused on debt relief for official bilateral claims鈥攊nitially by rescheduling鈥攆ollowed by increasing levels of debt stock reduction. During this period, the Paris Club repeatedly reduced or rescheduled the debts of a number of countries.</p> <p>For the first time, loans from international financial institutions were included in broader debt stock reduction agreements, which provided faster and more substantial debt relief for poor countries.</p> <p>Even as past debt was relieved, however, the sustainability of low-income countries' debt was eroded by new, even greater official lending鈥攑rimarily by IFIs. Between 1989 and 2003, new nominal lending to HIPCs was twice as large as the amount of nominal debt relief provided. In the early 2000s, several donor governments, think tanks, and civil society organizations began to realize that the HIPC Initiative did not provide a lasting solution to the problem of unsustainable debt in poor countries.</p> <p>This essay provides a brief contextual overview of several recent debt agreements as well as the remaining challenges ahead, such as the potential reaccumulation of unsustainable debt and vulture fund activity. With additional focus and policy action, the broader stakeholder community may be able to permanently cross off debt as a development challenge.</p> <p><b>Preview</b></p> <div><object style="width:650px;height:421px"><param name="movie" value="http://static.issuu.com/webembed/viewers/style1/v1/IssuuViewer.swf?mode=embed&layout=http%3A%2F%2Fskin.issuu.com%2Fv%2Fcolor%2Flayout.xml&backgroundColor=fffbe8&showFlipBtn=true&documentId=101027140951-5ef1f520d2584be4b6ad17b17ab695fd&docName=leo_jubilee-final&username=cgdpubs&loadingInfoText=The%20Legacy%20of%20the%20Jubilee%20Debt%20Relief%20Movement%3A%20Agreements%2C%20Lessons%2C%20and%20Remaining%20Challenges&et=1288188902970&er=48"/><param name="allowfullscreen" value="true"/><param name="menu" value="false"/><embed src="https://web.archive.org/web/20120107170547oe_/http://static.issuu.com/webembed/viewers/style1/v1/IssuuViewer.swf" type="application/x-shockwave-flash" allowfullscreen="true" menu="false" style="width:650px;height:421px" flashvars="mode=embed&layout=http%3A%2F%2Fskin.issuu.com%2Fv%2Fcolor%2Flayout.xml&backgroundColor=fffbe8&showFlipBtn=true&documentId=101027140951-5ef1f520d2584be4b6ad17b17ab695fd&docName=leo_jubilee-final&username=cgdpubs&loadingInfoText=The%20Legacy%20of%20the%20Jubilee%20Debt%20Relief%20Movement%3A%20Agreements%2C%20Lessons%2C%20and%20Remaining%20Challenges&et=1288188902970&er=48"/></object></div><div class="download-pdf" style="float:right;visibility:hidden;" id="div_bottom_share"><a target="_newfb" href="https://web.archive.org/web/20120107170547/http://www.facebook.com/sharer.php?u=http://www.cgdev.org/content/publications/detail/1424540/&t=The Legacy of the Jubilee Debt Relief Movement: Agreements, Lessons, and Remaining Challenges"><img style="position: relative;top: -1px;" src="/web/20120107170547im_/http://cgdev.org/layout/facebook_share.png"></a>  <a href="https://web.archive.org/web/20120107170547/http://twitter.com/share" class="twitter-share-button" data-count="horizontal" data-via="CGDev">Tweet</a><script type="text/javascript" src="https://web.archive.org/web/20120107170547js_/http://platform.twitter.com/widgets.js"></script></div>  </td> <td style="width:20px"></td> <td id="section-sidebar" valign="top">  <h3>Research Topics</h3> <ul> <li><a href="/web/20120107170547/http://cgdev.org/section/topics/debt/">Debt Relief</a></li> </ul> <h3>CGD Experts</h3> <ul> <li><a href="/web/20120107170547/http://cgdev.org/content/expert/detail/1424104/">Ben Leo</a></li> </ul> <h3>Articles</h3> <ul> <li><a href="/web/20120107170547/http://cgdev.org/content/article/detail/1424565/">What Ever Happened to the Jubilee? A 10th Anniversary Assessment of the Debt Relief Movement</a></li> <li><a href="/web/20120107170547/http://cgdev.org/content/article/detail/13504/">Debt Relief for Liberia</a></li> <li><a href="/web/20120107170547/http://cgdev.org/content/article/detail/1423590/">Nigerian Debt Relief Now a Done Deal: Q&A; with Todd Moss</a></li> <li><a href="/web/20120107170547/http://cgdev.org/content/article/detail/1423574/">Q & A: Nigerian Debt Relief</a></li> </ul> <h3>Events</h3> <ul> <li><a href="/web/20120107170547/http://cgdev.org/content/calendar/detail/1424443/">What Ever Happened to the Jubilee? A 10th Anniversary Assessment of the Debt Relief Movement</a></li> </ul> <br/>  </td> </tr> </table> <script type="text/javascript"> var share_div = $("#div_bottom_share"); var offset = share_div.offset(); if(offset.top > 999 || 1){ document.getElementById('div_bottom_share').style.visibility = 'visible'; } </script>  <div class="clear"></div> </div> <div id="footer"> <div id="footer-top"> <table cellpadding="0" cellspacing="0" style="width:100%"> <tr> <td align="left"> <a href="/web/20120107170547/http://cgdev.org/section/contactus/">Contact Us</a> | <a href="/web/20120107170547/http://cgdev.org/section/about/presscenter/">Press Center</a> | <a href="/web/20120107170547/http://cgdev.org/section/about/employment/">Jobs</a> | <a href="/web/20120107170547/http://cgdev.org/section/about_enews/sitefeeds/">RSS</a> | <a href="/web/20120107170547/http://cgdev.org/section/about/donate/">Invest</a> </td> <td align="right"> © 2012, CGD. All rights reserved.   |   <a href="/web/20120107170547/http://cgdev.org/content/article/detail/1423897/">Credits</a> </td> </tr> </table> </div> <div id="footer-bottom"> <table cellpadding="0" cellspacing="0" style="width:100%"> <tr> <td valign="top" style="width:260px"> <div style="font-weight:bold">CENTER FOR GLOBAL DEVELOPMENT</div> <div style="padding-top:10px">1800 Massachusetts Avenue NW, Third Floor</div> <div style="padding-bottom:10px">Washington DC 20036</div> <div>Tel 202.416.4000   |   Fax 202.416.4050</div> </td> <td valign="top" style="width:140px; border-left:2px solid #d9e9eb; border-right:2px solid #d9e9eb"> <table cellpadding="4" cellspacing="0" style="width:100%"> <tr> <td valign="top" style="padding:0 0 20px 11px; width:33%"><a href="https://web.archive.org/web/20120107170547/http://twitter.com/cgdev" target="_blank"><img src="/web/20120107170547im_/http://cgdev.org/layout/icon-twitter.png" alt="Twitter"/></a></td> <td valign="top" style="padding: 2px 0 0 9px; width:33%"><a href="https://web.archive.org/web/20120107170547/http://www.facebook.com/cgdev" target="_blank"><img src="/web/20120107170547im_/http://cgdev.org/layout/icon-facebook.png" alt="Facebook"/></a></td> <td valign="top" style="padding-left:9px; width:33%"><a href="https://web.archive.org/web/20120107170547/http://www.youtube.com/globaldevelopment" target="_blank"><img src="/web/20120107170547im_/http://cgdev.org/layout/icon-youtube.png" alt="YouTube"/></a></td> </tr> <tr> <td valign="top" style="padding:0 0 20px 12px; width:33%"><a href="/web/20120107170547/http://cgdev.org/section/about_enews/sitefeeds/" target="_blank"><img src="/web/20120107170547im_/http://cgdev.org/layout/icon-rss-big.png" alt="RSS"/></a></td> <td valign="top" style="padding: 0 0 0 3px; width:33%"><a href="https://web.archive.org/web/20120107170547/http://intlrel.meetup.com/68/" target="_blank"><img src="/web/20120107170547im_/http://cgdev.org/layout/icon-meetup.png" alt="Meetup"/></a></td> <td valign="top" style="padding-left:9px; width:33%"><a href="https://web.archive.org/web/20120107170547/http://blogs.cgdev.org/global_prosperity_wonkcast/" target="_blank"><img src="/web/20120107170547im_/http://cgdev.org/layout/icon-podcast.png" alt="Podcast"/></a></td> </tr> </table> </td> <td valign="top" align="right"> <a href="https://web.archive.org/web/20120107170547/http://blogs.cgdev.org/global_prosperity_wonkcast/"><img src="/web/20120107170547im_/http://cgdev.org/layout/badges/wonkcast_logo_167.png" alt="Global Prosperity Wonkcast"/></a>   <a href="/web/20120107170547/http://cgdev.org/section/opinions/reading/"><img src="/web/20120107170547im_/http://cgdev.org/layout/badges/wwrbadge.png" alt="What We're Reading"/></a>   <a href="/web/20120107170547/http://cgdev.org/section/about/donate/cgd_society"><img src="/web/20120107170547im_/http://cgdev.org/layout/badges/cgd-society.jpg" alt="CGD Society"/></a> </td> </tr> </table> </div> </div> <script type="text/javascript"> var gaJsHost = (("https:" == document.location.protocol) ? "https://web.archive.org/web/20120107170547/https://ssl." : "https://web.archive.org/web/20120107170547/http://www."); document.write(unescape("%3Cscript src='" + gaJsHost + "google-analytics.com/ga.js' type='text/javascript'%3E%3C/script%3E")); </script> <script type="text/javascript"> var pageTracker = _gat._getTracker("UA-1044429-1"); pageTracker._setDomainName("cgdev.org"); pageTracker._setLocalRemoteServerMode(); pageTracker._initData(); pageTracker._trackPageview(); </script> </body> </html>

CINXE.COM

The Legacy of the Jubilee Debt Relief Movement: Agreements, Lessons, and Remaining Challenges : Center for Global Development : Publications