Human-Needs Based Debt Sustainability Analysis: A Challenge For Zambia

In this report. Jubilee Zambia presents a proposal of a set of guides on the development of a human- needs based Debt Sustainability Analysis Framework (DSA.). This proposal is formulated with a view to stimulate dialogue at national and international levels on the need to develop a human-need based framework on Debt Sustainability Analysis for Zambia. Jubilee Zambia believes that a better and effective DSA framework is one that primarily promotes and upholds sustainable human development in poor countries such as Zambia. In developing this proposal, Jubilee Zambia recognises that the country has made significant achievements in attaining the HIPC Completion Point in early 2005. On one hand, this process has resulted in appreciable debt relict, both from bilateral and multilateral creditors. But on the other hand, research has shown that the IMF’s DSA approach upon which debt relief was delivered has serious limitations. Zambia faces numerous social and economic challenges, such as high poverty levels and the HIV/AIDS pandemic. In addition, the experiences of other countries such as Uganda and Gambia continue to show the vulnerability of poor countries to deeper external debt crisis.