A debt crisis is looming in the Global South. While international capital has partially returned to developing and emerging economies, in many low- and middle-income countries debt service is impeding crisis responses, constraining the ability to adapt to the impending climate crisis and threatening the achievement of the 2030 Sustainable Development Agenda.
The G20 Common Framework for Debt Treatments will not suffice to tackle the debt problem facing many developing and emerging economies. This is a systemic problem, and a global and systemic response is needed. The international community and the G20 in particular need to agree on an ambitious agenda for tackling the debt crisis and providing countries with the fiscal space for sustainable crisis responses.
Against this backdrop, the Debt Relief for Green and Inclusive Recovery initiative of the Heinrich Böll Foundation, the Centre for Sustainable Finance at SOAS University London and the Boston University Global Development Policy Center will share its enhanced ambitious proposal for a concerted and comprehensive debt relief on a global scale to free up resources in heavily indebted developing countries to support sustainable recoveries, boost economic resilience, and foster a just transition to a low-carbon economy.
Table of contents
- The Calm before the Storm: A Debt Crisis Is Looming
- Debt Sustainability Analysis: Getting It Right
- Creating Incentives for Private-Sector Participation
- How to Link Debt Relief to a Green and Inclusive Recovery
- The Way Forward