Report “Securing Private-Sector Participation and Creating Policy Space for Sustainable Development”
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.
Presentation “Debt Relief for a Green and Inclusive Recovery: Securing Private-Sector Participation and Policy Space for Sustainable Development”
On Monday, 28. June 2021 the Heinrich Böll Stiftung, the Centre for Sustainable Finance at SOAS University London and the Global Development Policy Center, Boston University hosted an expert webinar discussion and presentation of its new report.
Co-authored by Ulrich Volz, Shamshad Akhtar, Kevin P. Gallagher, Stephany Griffith-Jones, Jörg Haas and Moritz Kraemer, the report “Securing Private-Sector Participation and Creating Policy Space for Sustainable Development” declares it is time for the G20 to be bold and revamp their approach, citing historic evidence that delays will only lead to more severe and even disastrous outcomes for debtors and creditors alike. The report proposes four steps to transform the G20 Common Framework which are explained in a blog summary by Katie Gallogly-Swan from the Boston University Global Development Policy Center.
The report “Debt Relief for Green and Inclusive Recovery” proposes that low and middle-income countries with unsustainable debt burden receive substantial debt relief by public and private creditors, in order to provide fiscal space for investment in Covid-19-related health and social spending, climate adaptation and green economic recovery strategies.
Con el propósito de permitir una recuperación ecológica y socialmente justa para todos los países, resulta necesario abordar urgentemente los problemas de la deuda pública para que todos los gobiernos tengan el espacio fiscal necesario para financiar gastos sanitarios y sociales cruciales e invertir en una recuperación ecológica e inclusiva.
The Statement on “Debt Relief for Green and Inclusive Recovery” is supported by 23 former Central Bank Governors and former Finance Ministers from around the world. The statement calls on the G20 to enact a Debt Relief for a Green and Inclusive Recovery Initiative that requires bilateral, multilateral, and private sector debt relief on a grand scale, analogous to the Highly Indebted Poor Countries Initiative.
Several authors have been asked to prepare background papers as a contribution to the discussions of the core group of the Debt Relief for Green and Inclusive Recovery (DRGR) project. They reflect the position of the respective authors, not the project.
Background Paper #1: Scaling up ecosystem-based debt-for-climate swaps: from the millions to the billions. By Stephen Leonard, Ellycia Harrould-Kolieb, Oscar Reyes, Justine Nicole Torres, Elizabeth Crespo
Background Paper #5: Debt for Climate opportunities in South Africa. The role of concessional finance in unlocking the country’s energy transition. Emily Tyler, Celeste Renaud, Adam Roff (Meridian Economics)