Addressing the challenges of 21st century sovereign debt crises.
The mission of the Debt Relief for Green and Inclusive Recovery (DRGR) Project is to utilize rigorous, policy-oriented research to advance innovative solutions to address the challenges of 21st century sovereign debt crises.
Taking a holistic approach, the DRGR Project engages with policymakers, thought leaders and civil society to further ambitious, evidence-based policy dialogue for sustainable development around the world. The DRGR Project has been designed since its inception with input from stakeholders in the Global South, and to advance its policy recommendations through a development-centered lens.
The DRGR Project is a collaboration between the Boston University Global Development Policy Center, Heinrich-Böll-Stiftung and the Centre for Sustainable Finance at SOAS, University of London. Founded in 2020 during the height of the COVID-19 pandemic, the DRGR Project focuses on the linkages between sovereign debt distress and climate change, advancing pioneering proposals to unlock finance for sustainable development and to achieve shared climate and development goals.
Latest research
Debt Relief by Multilateral Lenders –
Why, How and How Much?
September 2023
As the sovereign debt crisis in the Global South continues to unfold, the lack of involvement of multilateral development banks (MDBs) in debt relief efforts has become a contentious issue among major creditors. Although the Group of 20 (G20) has explicitly called for MDBs to develop options to share the burden of debt relief efforts, MDBs have not presented any concrete and systemic plan thus far on how to contribute to debt relief efforts to countries applying for the G20 Common Framework. The report “Debt Relief by Multilateral Lenders – Why, How and How Much?” aims to contribute to the ongoing debate over debt relief negotiations and MDBs in three main areas.
Africa’s Inconvenient Truth: Debt Distress and Climate-Resilient Development in Sub-Saharan Africa
August 2023
Due to multiple external shocks since the outbreak of the COVID-19 pandemic, sub-Saharan Africa (SSA) is facing acute debt distress and new highs in the cost of foreign capital. Concomitantly, the region needs to mobilize a stepwise level of financing to meet shared climate and development goals, under the Paris Agreement climate targets and the UN 2030 Sustainable Development Goals (SDGs). Do SSA countries have the fiscal space necessary to achieve the Paris Agreement commitments and SDGs while also servicing their external debt?
Latest Commentary
- Chart of the Week: Why Multilateral Development Banks Need to Participate in Debt ReliefThe lack of meaningful engagement from all creditor classes has undermined the effectiveness of the Group of 20’s Common Framework in providing significant debt relief. Our “Chart of the Week” shows why the role of multilateral development banks in particular deserves special attention.
- How Brazil’s G20 Presidency Could Break the Vicious Cycle of Debt and InequalityAs president of the G20, Brazil should propose a discussion on broad debt relief for developing countries and the inclusion of all creditors in renegotiations.
- Navigating Global Challenges in 2024: Opportunities for Collaboration and Progress on Debt Relief and Climate ChangeAs the new year unfolds, global dynamics are set for pivotal shifts, with high-profile elections and important forums shaping the international stage – and influencing how the world addresses mounting sovereign debt, climate change, and social inequality. Here is an outlook on some of the most critical course-setting events in the months to come.