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The British Government regards a closer link between debt relief and reducing poverty as the very rationale of a revived HIPC. The Chancellor of the Exchequer has described the challenges of world poverty and international debt relief as the great moral issue of our decade. Debt relief can reduce poverty in two ways: (1) debt relief provides resources for anti-poverty programmes, and revives business confidence, which revives the economy; (2) debt relief should be provided to strengthen and sustain good policies.

This report, produced by the Treasury of the UK Government, examines the above two ways in which debt relief can reduce poverty and discusses mobilising international resources and support. The report also provides principal suggestions and proposals about the analysis to be undertaken as part of the HIPC Review. [adapted from author]

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