Simulating the effects of debt relief in Zambia

Marko Nokkala

Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientific


The HIPC initiative for debt relief in the poorest countries has been extended to cover more countries. Zambia is one the countries accepted under the enhanced initiative for a debt relief of US$ 3.8 billion. In this paper, the possible effects of this debt relief are analysed using a social accounting matrix as a tool of analysis. Two alternative approaches were chosen: income transfers, and direct production support in the amount of the annual decrease in the debt service. Experiments show how debt service relief can contribute to national growth targets. They also show the different effects on household income, resulting from the alternative expenditure patterns. Income transfer scenario creates greater increase in the household income, at the expense of production value.
Original languageEnglish
Title of host publicationWIDER Development Conference of Debt Relief
Subtitle of host publicationHelsinki, 17-18 August 200
Publication statusPublished - 2001
MoE publication typeB3 Non-refereed article in conference proceedings

Publication series

SeriesWIDER Discussion Paper

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    Nokkala, M. (2001). Simulating the effects of debt relief in Zambia. In WIDER Development Conference of Debt Relief: Helsinki, 17-18 August 200 [27] WIDER Discussion Paper, No. 2001/118