Debt Conversion Programmes and Investment — Applying the Latin American Experience to Russia

Following the tragic events of September 11 in the US, and the very cooperative response of President Putin, there is a clear window of opportunity for Russia to become more closely and more rapidly integrated with major OECD economies. This means in particular a real possibility to proceed much more quickly than anticipated with accession to the WTO and into some kind of specific trade agreement with the European Union. This also means a willingness from the West to be more open than in the past on such issues as management of Russia's Paris Club debt. Against this background, there is a renewed interest in conversion of debt into investment, which would significantly help Russia to foster foreign direct investment at a time when the country must greatly increase its competitiveness.