The World Bank and the IMF had once argued that the

leniency of debt forgiveness would make it more difficult

for themselves to borrow cheaply on the world's capital

markets. If you were a World Bank donor, would you have

supported the HIPC Debt Initiative or argued against it?

Explain.

While working together on the HIPC Debt Initiative,

things came to a standstill when the IMF gave a more

optimistic forecast for Uganda's coffee exports than did

the World Bank and so argued against the need for debt

relief. Which organization do you think should play a

greater role in aiding economic development? Explain.