The Effects of Heavily Indebted Poor Countries Initiative on the Millennium Development Goals for Health

Abstract

ABSTRACTThe objective of this study is to investigate the impact of Heavily Indebted Poor Countries Initiative (HIPC) on the attainment of the health millennium development goals (MDGs) in Africa and identify other correlates of health MDGs. This way, the paper uses data from the World Bank and employs the difference in difference (DID) approach to estimate the impact of HIPC on health MDGs and to identify other determinants of health MDG attainment. The results show that the impact of HIPC on health MDGs is positive. Specifically, due to HIPC, the level of the following health MDG indicators decreased: mortality rate (infant); mortality rate (neonatal); incidence of tuberculosis; prevalence of HIV/AIDS, and mortality rate under five. However, the incidence of tuberculosis (all forms) registered an increase in Africa, even in treated groups. Our findings also indicate that MDGs for health will not be attained simultaneously because some variables that reduce mortality such as GDP per capita, natural resources and education cause HIV/AIDS.