Case | HBS Case Collection | April 2007 (Revised July 2007)

Aid, Debt Relief, and Trade: An Agenda for Fighting World Poverty (A)

by Laura Alfaro, Eric D. Werker and Renee Kim

Abstract

At the 2005 Group of Eight summit, world leaders agreed to relieve the world's poorest countries' debt burdens and double aid to Africa by 2010. The announcement raised questions whether debt relief would really help the poor. By examining past aid trends and policies of multilateral institutions, such as the International Monetary Fund and the World Bank, this case also questions whether aid can allow poor countries to break the vicious cycle of poverty, and/or how aid can be used effectively.

Keywords: Developing Countries and Economies; Borrowing and Debt; Capital; International Relations; Nonprofit Organizations; Poverty; Welfare or Wellbeing; Africa;

Citation:

Alfaro, Laura, Eric D. Werker, and Renee Kim. "Aid, Debt Relief, and Trade: An Agenda for Fighting World Poverty (A)." Harvard Business School Case 707-029, April 2007. (Revised July 2007.)