Debt relief is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations. It concerns in particular the Third World debt, which started exploding with the Latin American debt crisis (Mexico 1982, etc.). Debt is that which is owed; usually referencing assets owed, but the term can cover other obligations. ... Third World debt is external debt incurred by Third World countries. ... The Latin American debt crisis refers to a period in the early 1980s (and for some countries starting in the 1970s) where countries in the region reached a point where their foreign debt exceeded their earning power and they were not able to repay it. ...

Debt relief for heavily indebted and underdeveloped developing countries was the subject in the 1990s of a campaign by a broad coalition of development NGOs, Christian organisations and others, under the banner of Jubilee 2000. This campaign, involving, for example, demonstrations at the 1998 G8 meeting in Birmingham, was successful in pushing debt relief onto the agenda of Western governments and international organisations such as the International Monetary Fund and World Bank. Ultimately the Heavily Indebted Poor Countries (HIPC) initiative was launched to provide systematic debt relief for the poorest countries, whilst trying to ensure the money would be spent on poverty reduction. Thailand now owes 1 trillion dollars in debt back to many different countries around the world. Underdevelopment is the state of an organism or of an organisation (e. ...  High human development Medium human development Low human development Unavailable A developing country is a country with a relatively low standard of living, undeveloped industrial base, and moderate to low Human Development Index (HDI). ... The term non-governmental organization (NGO) is used in a variety of ways all over the world and, depending on the context in which it is used, can refer to many different types of organizations. ... Logo of Jubilee 2000 Jubilee 2000 was an international coalition movement in over 40 countries calling for cancellation of unpayable third world debt by the year 2000. ... The Group of Eight (G8) consists of Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States. ... The city from above Centenary Square. ... The International Monetary Fund (IMF) is an international organization that oversees the global financial system by observing exchange rates and balance of payments, as well as offering financial and technical assistance when requested. ... Logo of the World Bank The International Bank for Reconstruction and Development (IBRD, in Romance languages: BIRD), better known as the World Bank, is an international organization whose original mission was to finance the reconstruction of nations devastated by WWII. Now, its mission has expanded to fight poverty by means... The 38 states recognized as the Heavily Indebted Poor Countries (HIPC). ... This article needs to be wikified. ...

The HIPC programme has been subject to conditionalities similar to those often attached to IMF and World Bank loans, requiring structural adjustment reforms, sometimes including the privatisation of public utilities, including water and electricity. To qualify for irrevocable debt relief, countries must also maintain macroeconomic stability and implement a Poverty Reduction Strategy satisfactorily for at least one year. Under the goal of reducing inflation, some countries have been pressured to reduce spending in the health and education sectors. A conditionality in international development is a condition attached to a loan or to debt relief, typically by the International Monetary Fund or World Bank. ... Structural adjustment is a term used to describe the policy changes implemented by the International Monetary Fund (IMF) and the World Bank (the Bretton Woods Institutions) in developing countries. ... Privatization (alternately denationalization or disinvestment) is the transfer of property or responsibility from the public sector (government) to the private sector (business). ... A public utility is a company that maintains the infrastructure for a public service. ... Poverty Reduction Strategy Papers (PRSPs) are in many ways the replacement for Structural Adjustment Programs, and are documents required by the IMF and World Bank before a country can be considered for debt relief within the HIPC programme. ...

The Multilateral Debt Relief Initiative (MDRI) is an extension of HIPC. The MDRI was agreed following the G8's Gleneagles meeting in July 2005. It offers 100% cancellation of multilateral debts owed by HIPC countries to the World Bank, IMF and African Development Bank. The Group of Eight (G8) consists of Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States. ... Official G8 2005 Portrait. ... Ongoing events • 2005 Atlantic and Pacific hurricanes • 2005 Maharashtra floods • 2005 Gujarat Flood • Expo 2005 in Aichi, Japan • Fuel prices • Gomery Comm. ... Logo of the World Bank The International Bank for Reconstruction and Development (IBRD, in Romance languages: BIRD), better known as the World Bank, is an international organization whose original mission was to finance the reconstruction of nations devastated by WWII. Now, its mission has expanded to fight poverty by means... The flag of the International Monetary Fund (IMF) The International Monetary Fund (IMF) is the international organization entrusted with overseeing the global financial system by monitoring foreign exchange rates and balance of payments, as well as offering technical and financial assistance when asked. ... The African Development Bank (AfDB) is a development bank established in 1964 with the intention of promoting economic and social development in Africa. ...

Arguments against debt relief

Opponents of debt relief argue that it is a blank cheque to governments, and fear savings will not reach the poor in countries plagued by corruption. Others argue that countries will go out and contract further debts, under the belief that these debts will also be forgiven in some future date. They use the money to enhance the wealth and spending ability of the rich, many of whom will spend or invest this money in the rich countries, thus not even creating a trickle-down effect. They argue that the money would be far better spent in specific aid projects which actually help the poor. They further argue that it would be unfair to third-world countries that managed their credit successfully, or don't go into debt in the first place, that is, it actively encourages third world governments to overspend in order to receive debt relief in the future. This article or section should include material from Trickle-down theory In economics the trickle-down effect is central to conservative economic theory that rejects Keynesian economics. ...

Personal debt relief

Personal debt has become an increasingly large problem in recent years. For instance, it is estimated that the average US household has $19,000 in non-mortgage debt[1]. With such large debt loads, many individuals have difficulty making repayments on debts and are in need of help.

There are many companies who offer debt consolidation services. However, such services may not always be in the best interests of the person involved and may involve taking out a loan secured on a person's home. Marketing materials are designed to persuade customers to take up the company's offer rather than offering a personal best solution for reducing debt. Where debt has become a problem, it is often best to turn to an independent consumer's association for advice before calling debt consolidation companies as they often have great experience with such problems and may be able to advise the most effective avenues for debt relief. Debt consolidation entails taking out one loan to pay off many others. ...

See also

• Anti-globalisation movement
• Conditionality
• International development
• International Monetary Fund | World Bank
• Survie NGO activist group against Third World debt
• Odious debt
• Illegitimate debt
• Third World debt
• Jubilee USA

Anti-WEF grafiti in Lausanne. ... A conditionality in international development is a condition attached to a loan or to debt relief, typically by the International Monetary Fund or World Bank. ... This article is about International Development. ... The International Monetary Fund (IMF) is an international organization that oversees the global financial system by observing exchange rates and balance of payments, as well as offering financial and technical assistance when requested. ... Logo of the World Bank The International Bank for Reconstruction and Development (IBRD, in Romance languages: BIRD), better known as the World Bank, is an international organization whose original mission was to finance the reconstruction of nations devastated by WWII. Now, its mission has expanded to fight poverty by means... Survie (French for survival) is a non-governmental organization (NG0) founded in 1984, with the objective of struggling against hunger and corruption in the Third World. ... Odious debt is debt which is incurred by a regime for purposes which do not serve the interest of the state. ... Third World debt is external debt incurred by Third World countries. ... Jubilee USA Network is an alliance of churches, diverse faith communities, labor, environmental, solidarity, and community organizations building a grassroots movement to achieve the complete cancellation of unjust and illegitimate debt owed by countries with high levels of human need, and an end to unjust economic policies imposed on those...

External links

• Debt Relief under the Heavily Indebted Poor Countries Initiative, International Monetary Fund.
• Committee for the Abolition of Third World Debt.
• Debt Relief for Heavily Indebted Poor Countries, World Bank.
• Debt Relief International, Development Finance Group.
• Jubilee Research at New Economics Foundation.
• HIPC Debt Relief: Myths and Reality (Jan Joost Teunissen and Age Akkerman, eds.), Fondad, 2004, book, pdf)
• Underdevelopment in Sub-Saharan Africa: The Role of the Private Sector and Political Elite (Moeletsi Mbeki), Cato Institute foreign policy brief
• "A truckload of nonsense: The G8 plan to save Africa comes with conditions that make it little more than an extortion racket" George Monbiot, The Guardian , June 14, 2005,
• "Helping Africa help itself" The Economist, June 30, 2005
• Zambia reaps benefit as G8 debt relief takes shape
• Jubilee USA Network
• Debt ForgivenessUniversity of Iowa Center for International Finance & Development