ABSTRACT
This chapter focuses on policies for growth within the context of the International debt strategy. Sound policies and sustained, low-inflation growth in the industrial countries must provide the essential foundation for a successful debt strategy, and are a prerequisite for stronger growth in the debtor countries. A number of principal debtor countries have experienced setbacks in their efforts to improve their economic situations, particularly with regard to inflation and fiscal imbalances, undercutting prospects for sustained growth. Among the international financial institutions, the International Monetary Fund has played a major role in advising member nations on the development of policies necessary to promote adjustment and growth. The chapter shows that banking community make a pledge to provide these amounts of new lending and make it publicly, provided the debtor countries also make similar growth-oriented policy commitments as their part of the cooperative effort.
