The 1986–90 Initiatives: A Break with the Past

Abstract

In 1986–90 the creditors with the power to change Sub-Saharan debt negotiations — OECD governments, the IMF and World Bank — launched public initiatives to change procedures and terms. Many saw these as a major break with the past (Keller, 1988; OECD Financing and External Debt, 1988; UN, 1988; World Bank World Debt Tables, 1988). They also made African policy-makers more conciliatory at the IMF-World Bank Annual Meetings of September–October 1988 (AED and Africa Recovery). This chapter explains how Sub-Saharan national and regional initiatives failed but influenced change. It analyses the reforms in talks with the IMF, the Paris Club and aid donors, and the rise of debt reduction by commercial creditors. It shows why they have occurred, how far they change procedure, and their lessons for future reform. The conclusion finds that they have reduced 10 major faults, but these remain, preventing all sides from fulfilling their aims.