January 25, 2010
CGD fellow David Roodman examines the calls to cancel Haiti’s debt. His conclusion: while suspending Haiti’s debt payments is a no-brainer, debt relief would save the nation only $18–34 million a year through 2012—a trivial sum compared to Haiti’s need, to the ongoing aid flow, and to the money sent home by Haitians abroad. The World Bank’s offer to cancel debt while the IMF provides new loans in response to the quake highlights the need for better ways to help poor countries manage risk.