This study was produced by the Economic and Social Commission for Western Asia (ESCWA) and represents one of the activities completed under its programme of work for the biennium 2004-2005. The study has been carried out under the umbrella of the Monterrey Consensus, an outcome of the International Conference on Financing for Development (Monterrey, Mexico, 18-22 March 2002), bearing in mind the responsibility assigned to ESCWA to monitor progress made by its 13 members in improving regional access to financing for development. In response to that responsibility, and in recognition of the inclusion of debt relief and debt management within the framework of the Monterrey Consensus, ESCWA undertook the task of producing a study on the external debt situation in the ESCWA region, incorporating case studies on two heavily-indebted ESCWA member countries, namely, Jordan and Lebanon. During the preparation of this study, ESCWA sought the assistance of Ibrahim Saidi and Bashir Al Zu’bi, who worked as consultants on the case studies.