A/HRC/4/10 page 11 28. There are strong formal links between economic reform policy and debt relief as an economic reform track record is a precondition for HIPC and MDRI participation. As a consequence eligibility for debt relief might ultimately depend on the respect of conditionality that is not directly related to poverty reduction or debt sustainability, but to specific privatization requirements, for example. 29. The following paragraphs analyse some policy reform concepts commonly included in Poverty Reduction Strategies. A. Macroeconomic stability 30. Following IMF definition, macroeconomic stability is characterized by current account and fiscal balances consistent with a low and declining debt level, low inflation and a rising per capita gross domestic product (GDP).14 It is widely recognized that broad macroeconomic stability lays the basis for economic growth which, in turn, is an essential prerequisite for poverty reduction and the achievement of human rights. It can thus be argued that the objectives pursued by macroeconomic stabilization are coherent with article 6, paragraph 2, of ICESCR, pursuant to which signatories undertake to adopt policies and measures to achieve steady economic, social and cultural development and full and productive employment. 31. However, there is no general consensus among experts regarding the level of macroeconomic stability that leads to an optimal impact on growth and development, and there are, consequently, no generally recognized thresholds or benchmarks in this respect. The inflation target, one of the core elements of stabilization policy, can serve as an example as it is the controversy discussed between international financial institutions and civil society organizations. 32. Generally speaking, all stakeholders agree that high inflation can be harmful to the poor, by raising prices, eroding real wages and inhibiting growth. Inflation can thus have a negative impact on a wide range of economic, social and cultural rights, while policies that avoid high inflation rates can, a priori, be considered as being coherent with human rights obligations. 33. IMF maintains that the level of inflation ought to be kept “in the low single digits” in order to ensure macroeconomic stability. In this context, the Fund makes reference to studies providing evidence that higher inflation, even at fairly low levels of about 2 to 11 per cent, can robustly lead to lower growth.15 This view is not shared by the United Nations Conference on Trade and Development (UNCTAD) and many civil society organizations, who argue that very low inflation may harm the poor if the policies implemented to achieve low inflation target restricting pro-poor government spending and induce recession.16 34. It may thus be concluded that policy advice in the area of macroeconomic stabilization should not be based on generalized benchmarks or thresholds, but on individual analysis of the interaction of stabilization measures with other pro-poor policies in the country specific context. This can involve difficult trade-offs, for example between the benefits of increasing public spending at the cost of experiencing higher inflation or choosing to keep public spending within low targets in order to ensure the growth effects of macroeconomic stability.