When discussing the issue of international debt, the most common question people have is a variant on who controls these debts? The answer is usually a combination of the IMF and the World Bank. These two institutions, funded by a conglomeration of governments, are responsible for lending money to countries for development projects. It is these bodies that are responsible for the Highly Indebted Poor Countries (HIPC) initiative, that requires countries who desire debt reduction or cancellation to demonstrate their commitment to good economic governance (and, along the way, the privatisation of public services and the removal of trade tarrifs) through the production of Poverty Reduction Strategy Papers (PRSPs).
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