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
    PublisherUnited Nations University WIDER
    ISBN (Print)92-9190-058-3
    Publication statusPublished - 2001
    MoE publication typeB3 Non-refereed article in conference proceedings

    Publication series

    SeriesWIDER Discussion Paper


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