CGD President Nancy Birdsall testified before the U.S. Senate Foreign Relations Committee on Tuesday, May 17, 2005 on the Commission for Africa report initiated by Tony Blair. She suggested the U.S. should prepare a package of Africa-related initiatives for the UK-hosted G-8 Summit in July covering areas such as peace and security, advance market commitments for vaccines; debt relief, trade, and aid delivery. Sen. Lugar praised the proposal for an advance market commitment for vaccines. "This is an extraordinary idea and I thank you for bringing it to our attention," he said.
Although nearly all poor countries are classified by the World Bank as IDA-only, Nigeria stands out as a notable exception. Indeed, Africa’s most populous country is the poorest country in the world that is not classified as IDA-only. Under the World Bank’s own criteria, however, Nigeria has a strong case for reclassification. IDA-only status would have two potential benefits for Nigeria. First, it would expand Nigeria’s access to IDA resources and make the country eligible for grants. Second, it would strengthen Nigeria’s case for debt reduction. With a renewed economic reform effort getting under way and the emerging use of debt reduction as a tool for assisting economic and political transitions, the UK, the US, and other official creditors should support such a move as part of a broader strategy for encouraging progress in one of Africa’s most important countries.
Double-Standards, Debt Treatment, and World Bank Country Classification: The Case of Nigeria - Working Paper Number 45
Nigeria is currently classified by the World Bank as a ‘blend’ country, making it the poorest country in the world that does not have ‘IDA-only’ status. This paper uses the World Bank’s own IDA eligibility criteria to assess whether Nigeria has a case for reclassification.
This study brings readers up to date on the complicated and controversial subject of debt relief for the poorest countries of the world.