Never Miss an Update.
Explore Recent Editions
The Tide is Turning: Prominent Voices Call for Debt Relief
December 16, 2024
A growing number of influential voices, such as Indermit Gill, Chief Economist at the World Bank, and Cyril Ramaphosa, President of South Africa are signaling a significant shift in the global discourse on debt. The focus is moving away from short-term liquidity fixes towards a growing recognition that comprehensive debt relief is essential for sustainable development and climate action.
The pressing reality, laid bare in the World Bank’s latest “International Debt Report”, is that comprehensive debt relief is imperative for a large number of highly indebted nations. Gill does not mince words in the report’s foreword: The financing system is broken, he says, because “multilateral institutions and sovereign creditors bear almost all the risk, while private creditors reap almost all the rewards”.
Gill’s recognition of this urgency is shared by an increasing number of influential voices from Africa, with this call for comprehensive debt relief gaining momentum. It’s a potential turning point in global financial reform, that should be seized in 2025. Dive into the full blog to explore the solutions that are emerging from voices such as Tinubu, Rampahosa, and Sobel.
The Elephant in the Room: Insights on Debt from COP29 and the G20 Summit
November 29, 2024
At COP29 in Baku and the G20 Summit in Rio de Janeiro, discussions on debt and climate finance were high on the agenda, but meaningful progress was limited. While leaders acknowledged the critical intersection of fiscal constraints and climate resilience, their actions lagged far behind public demands for concrete actions.
Ahead to COP, African leaders such as the Nigerian President Bola Tinubu warned that offering climate finance without addressing debt is like ‘pedaling harder on a bicycle as its tires go flat.’ Yemi Osinbajo, former Vice President of Nigeria, argued that developing nations cannot fund adaptation or mitigation efforts without meaningful debt relief.
The G20 Summit in Rio that took place during COP29 echoed these concerns, but again, there was no major breakthrough on debt relief. While US President Biden called for faster debt restructuring, the G20 framework on debt still suffers from key shortcomings. However, the inclusion of wealth taxation in the G20 agenda marks a step toward a more equitable financial system.
Read our take on other outcomes of COP29 and the G20 Summit.
Key Takeways from the 2024 IMF and World Bank Group Annual Meetings
October 31, 2024
The 2024 IMF and World Bank Group Annual Meetings concluded against a backdrop of rising global debt and stagnant growth—an “unforgiving” combination, as IMF Managing Director Kristalina Georgieva put it. Military conflicts, geopolitical tensions, and high-interest rates continue to compound economic pressures, especially on developing countries facing prolonged fiscal constraints.
Our latest blog dives into the key outcomes from this year’s Annual Meetings, highlighting shifts in narrative and proposals for tackling the debt crisis. Though progress remains limited, we remain hopeful that South Africa’s upcoming G20 presidency, along with African leadership, will open new pathways to prioritize debt relief, climate resilience, and sustainable growth.
