To address climate change and meet the United Nations 2030 Sustainable Development Goals, emerging market and developing economies (EMDEs), excluding China, need to mobilize an estimated $3 trillion annually. However, these nations face fiscal constraints exacerbated by the COVID-19 pandemic, capital flight, and rising borrowing costs. The new Sovereign Debt and Environment Profiles (SDEP) database from Boston University’s Global Development Policy Center (GDP Center) examines these fiscal constraints and green investment opportunities in 114 EMDEs, bridging the research findings of the DRGR project and the GDP Center.
Category: News
Rising debt threatens development and climate protection in emerging market and developing evonomies. In order to make necessary climate investments affordable for countries with limited financial leeway, comprehensive reforms and targeted debt relief are inevitable.
The case of Zambia’s highlights the complexities and consequences of global debt dynamics, demonstrating that comprehensive debt relief is not only crucial for economic stability – but also for reducing global inequality. Reforming the G20’s Common Framework would be a key place to start.
Despite historic debt levels and escalating challenges faced by emerging and developing economies (EMDE), there was little to no progress regarding debt at the annual International Monetary Fund (IMF)/World Bank Group Spring Meetings. However, the discourse at the meetings highlighted the urgent need for innovative solutions and greater cross-border cooperation. Here is an overview of the most important developments.
How can emerging market and developing economies (EMDEs) mobilize the necessary financing to achieve the 2030 Agenda and the Paris Agreement without compromising their debt sustainability or indeed, solvency? A new report by the DRGR Project performs an enhanced global external debt sustainability analysis (DSA) to estimate the extent to which EMDEs can mobilize the recommended levels of external financing without jeopardizing debt sustainability.
The Debt Relief for a Green and Inclusive Recovery (DRGR) Project is pleased to announce the appointment of Bogolo Kenewendo and Dr. Patrick Njoroge as its newest Co-Chairs.
The 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.
As 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.
The spotlight at this year’s United Nations Climate Change Conference (COP28) was firmly on the Global Stocktake, tasked with evaluating the advancements made under the 2015 Paris Agreement. Yet, what developments have taken place in Dubai with regard to the debt crisis?
In the midst of a complex web of crises, Malawi is facing a debt restructuring process that does not address the depth of its challenges. To embark on a path to sustainable development and economic recovery, countries like Malawi need a holistic approach that takes into account all aspects of their economic and social realities – and includes all creditor classes.
Following the 2023 International Monetary Fund (IMF)/World Bank Group Annual Meetings in Marrakech, more details on the debt negotiation of Zambia and Suriname have surfaced. Among the intricate negotiations, one group appears to have emerged victorious, time and time again – bondholders.
Despite the precedent set by the Highly Indebted Poor Countries (HIPC) Initiative, the notion of involving multilateral development banks (MBDs) in debt relief continues to evoke skepticism and apprehension. DRGR Researcher Marina Zucker-Marques demystifies the topic of MDBs and debt relief, showing why their inclusion is not merely desirable but entirely achievable.