Mohamed Nasheed warns that without restructuring, the island nation can’t afford projects to protect its land and citizens.
The World Bank and IMF are likely to announce a new debt relief initiative at COP26, tying debt relief to Green investment. At the Centre for the Study of Financial Innovation (CSFI), DRGR-author Stephany Griffith-Jones explains our proposal as an alternative based on the Brady Plan that helped Latin America in the 1970s/80s, in which creditors would swap existing debt for guaranteed debt (with a haircut).
News organization “Quartz” quotes DRGR-authors Ulrich Volz and Kevin Gallagher in article on debt-for-climate swaps.
As the Global South grapples with a deadly pandemic and growing climate concerns, the United Nations Development Program estimates developing countries and emerging economies owe close to $1.1 trillion in debt service payments in 2021 alone. Comprehensive debt relief is needed to avoid this looming crisis, but existing relief structures, such as the G20’s Debt Service Suspension Initiative and Common Framework for Debt Treatments, fall short in meeting the severity of the moment.
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. Read the full announcement of the event here.
Five of the authors of our proposal “Securing Private Sector Participation and Policy Space for Sustainable Development” – Shamshad Akhtar, Kevin P. Gallagher, Stephany Griffith-Jones, Moritz Kraemer and Ulrich Volz – presented its key elements and calls for action.
They were joined by the following keynote speakers:
- Alicia Bárcena Ibarra, Executive Secretary, United Nations Economic Commission for Latin America and the Caribbean
- José Antonio Ocampo, Professor of Professional Practice in International and Public Affairs and Director of the Economic and Political Development Concentration at the School of International and Public Affairs, Columbia University
- Louis Kasekende, Executive Director, Macroeconomic and Financial Management Institute of Eastern and Southern Africa
Read the Blog Summary on the discussion by Rebecca Ray, Global Development Policy Center, Boston University, here.
Full Video Recording
In the “Breakingviews” section at Reuters, our co-authors Shamshad Akhtar and Ulrich Volz write about the deceptive calm and misplaced optimism in debt markets. They point out the enormous hurdles that developing and emerging economies face in recovering from the COVID-19 pandemic and meeting key climate and development goals at the same time.
A proposal by Ulrich Volz, Shamshad Akhtar, Kevin P. Gallagher, Stephany Griffith-Jones, Jörg Haas and Moritz Kraemer.
The world’s largest news channel reports exclusively on our report, developed by the Boston University Global Development Policy Center, the Heinrich Boell Foundation and the Center for Sustainable Finance at SOAS University of London.
World leaders have added their voices to a growing chorus calling for comprehensive debt relief linked to a green and inclusive recovery that involves private sector participation and middle-income countries. Our new report provides a blueprint for doing just that.
Many middle-income countries are grappling with an unsustainable debt burden as a result of the pandemic. However, there is still no global answer to their crisis situation. Now the UN chief is also calling for extensive measures.