ABSTRACT

I shall address some of the issues of macroeconomic adjustment in the middle-income, highly indebted countries, leaving aside the problems being faced by the low-income African countries since these countries face a very different set of circumstances. As you know, the low-income countries have not been making the massive net transfers to creditors that the middle-income countries have made. While many of the low-income countries face serious debt and fiscal problems, the source of their problems and the instruments which they have for dealing with them are quite different from those of the middle-income, highly indebted countries.