1. CAITLIN GARRABRANT KATERINA MAMAY The Effect of Debt Forgiveness on Transparency Prof. VreelandOctober 14, 2014

2. Research Question and Hypothesis Debt forgiveness Transparency

3. What is Transparency? HRV Index- How is it measured? Conditionality and Debt Forgiveness Robin Theobald and Conditionality in Africa

4. Literature Review Eric Neumayer’s research Nicholas Chauvin and Aart Kraay How is our research different?

5. Data 125 countries (1980-2010) Observations: 2103 Debt forgiveness mean: - 419.53 million constant 2005 United States dollars -WDI Transparency mean: - 1.18 (HRV index)

6. Method Control Variables: -Political Regime -GDP per capita -Country and year fixed effects Controlling for total central government debt

7. Regression Results Very slight positive correlation between debt forgiveness and transparency. Statistical significance at different income thresholds Correlations of control variables

10. Before, During, and After Variables

11. Case Studies Benin: - HIPC 1998-2003 Zambia - HIPC 2000-2004 *Both countries increased transparency before and during participation in the HIPC Initiative. *Transparency levels dropped after completion.

12. So What?

13. Implications Does reform last? Are debt relief programs effective policy tools?

14. Thank you