1. Evaluation of Paris Club Eline, Neil and Ben

2. What is the Paris Club? ❖ An informal group of officials from creditor countries whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor countries. ❖ Started in 1956 ❖ Main goal is debt relief

3. Members ❖ Permanent members: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Israel, Italy, Japan, the Netherlands, Norway, the Russian Federation, Spain, Sweden, Switzerland, the United Kingdom and the United States of America. ❖ They want to promote economic development and free trade if they owe debt ❖ They want to invest in their own countries if they owe debt

4. What Have They Done? ❖ Paris Club has helped 90 different countries eliminate a total of 583 billion dollars of debt. ❖ They have also made a total of 432 separate agreements

5. Notable Recent Examples ❖ In May 2014, Paris Club made a deal with Argentina to clear 9.7 billion dollars of its foreign debt after it defaulted in 2001. ❖ In January 2013, Burma had 50% of its debt cancelled, which comes to 7.5B$. They then have to pay off the remaining debt over 15 years with a 7 year grace period. ❖ In November 2004, Paris Club agreed to cancel a total of 80% of Iraq’s foreign debt. This plan was meant to span over 4 years and relieve their 38.9B$ debt to 7.8B$. Argentine Minister of Economic Affairs discussing Paris Club debt relief

6. Methods for Debt Relief 3 Main Methods: 1. Lower interest rates 2. Prolonged periods of time to pay off debt 3. Haircuts

7. MDGs The Paris Club Initiative targets MDG #1, namely eradicating extreme poverty and hunger, and MDG #8, creating a global partnership for development.

8. How has the Paris Club Decreased Disparity? ❖ Countries suffering from conflict/natural disasters ❖ Reducing Disparity in HIPCs ❖ Cycle of Debt ❖ Debt Sustainability ❖ Debtor Countries Requirements ❖ Promotion of Investment ❖ Moral Perspective

9. How has the Paris Club Increased Disparity? Issues with Group Itself ❖ Transparency ❖ Eligibility ❖ Too Little Relief ❖ Time, SAPs, Cut-off dates ❖ Creditors’ Power

10. How has the Paris Club Increased Disparity? Issues with Debt Relief ❖ Other Efforts ❖ Reliance ❖ Debt Sustainability ❖ Sustainable Economic Growth ❖ Small Economies Is high debt ratio cause or symptom of low growth?

11. Websites ❖ · http://www.voanews.com/content/cuba-paris-club-debt-total/2813010.html http://www.voanews.com/content/cuba-paris-club-debt-total/2813010.html ❖ · http://www.dri.org.uk/pdfs/EngPub3_Paris_Club.pdf http://www.dri.org.uk/pdfs/EngPub3_Paris_Club.pdf ❖ · http://www.worldhunger.org/articles/global/debt/caritas3.htm http://www.worldhunger.org/articles/global/debt/caritas3.htm ❖ · https://www.imf.org/external/np/speeches/2006/061406.htm https://www.imf.org/external/np/speeches/2006/061406.htm ❖ · http://www.euromoney.com/Article/1004144/Paris-Club-comes-under-attack.html http://www.euromoney.com/Article/1004144/Paris-Club-comes-under-attack.html ❖ · https://en.wikipedia.org/wiki/Paris_Club#Criticism_of_the_Paris_Club https://en.wikipedia.org/wiki/Paris_Club#Criticism_of_the_Paris_Club ❖ · https://www.gsb.stanford.edu/insights/economic-analysis-debt-relief-doesnt-help-small-countries https://www.gsb.stanford.edu/insights/economic-analysis-debt-relief-doesnt-help-small-countries ❖ · http://www.carnegiecouncil.org/publications/articles_papers_reports/10002.html http://www.carnegiecouncil.org/publications/articles_papers_reports/10002.html ❖ http://www.investopedia.com/terms/d/debt-relief.asp http://www.investopedia.com/terms/d/debt-relief.asp