Categories
News

DRGR-Proposal Receives Recognition in Progressive International’s Policy Briefing

In the run-up to the G20 meeting on February 25 and 26, “Progressive International” featured the DRGR proposal in its policy briefing on “Debt Justice at the G20”.

Following the criticism of the G20s own “Common Framework”, the document regards itself as “a call to break with [the] system of neo-colonial exploitation — and an analysis of the G20 obligations to initiate a just debt workout system that 

  • Compels every creditor — public and private — to participate, putting an end to “holdouts” that undermine debtors’ bargaining power in order maximize their profits.
  • Includes all countries facing debt distress — not just the poorest countries who have the cheapest debt.
  • Creates a “workout” process that is transparent and inclusive — rather than one is that by and for creditors.
  • Guarantees “independent debt assessments” that focus on restoring economic capacity, not on cost minimisation.
  • Offers real debt cancellation, instead of diagnosing the debt crisis as a question of liquidity.
  • Includes no austerity conditionalities — conditionalities that have intensified inequalities and hollowed out public health systems.
  • Delivers additional financing for pandemic response and sustainable recovery.” 

At the end of the document, various predominant debt relief proposals are compared in a summary table. The DRGR-idea is featured here as “HBS/SOAC/GDPC”:

Originally published here
Categories
News

Statement on Debt Relief for a Green and Inclusive Recovery

Statement on Debt Relief for a Green and Inclusive Recovery

The COVID-19 crisis is the biggest threat to human prosperity and a healthy planet in close to a century.

As the world confronts a new wave of the COVID-19 virus, the United Nations reports that many developing countries are forced to deploy 30-70 percent of government revenues to pay off international creditors rather than pursue these broader goals.

The World Bank estimates that upwards of 150 million people could be pushed into extreme poverty by 2021, with 8 out of 10 of these ‘new poor’ in middle income countries.

This is not the time for nation-states to be forced to trade their people and futures for international debt repayments that have ballooned for reasons largely out of their control, putting action on our shared climate change and sustainable development goals on hold.

It is the time to reset and restart our economies in a new direction with inclusivity, climate and development goals at the core of the recovery effort.

To that end, we the undersigned call on the G20 and world leaders to provide debt relief to emerging market and developing countries with unsustainable debt burdens so they can secure fiscal space to combat the virus, protect the vulnerable, and secure a green and inclusive recovery.

We also support a substantial new allocation of the International Monetary Fund’s Special Drawing Rights, accompanied by a significant increase in multilateral and regional development bank financing aided by an increase in those banks’ capital. These measures are necessary to finance health, social protections and climate transitions for emerging market and developing countries in need.

We therefore call 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.

A G20 emergency summit on a Green and Inclusive Recovery in response to the debt crisis is overdue. We urge the Italian G20 presidency to initiate such a summit as soon as the Biden administration has come into office.

An unprecedented crisis requires an unprecedented response. It is time for G20 leaders to advance comprehensive debt relief and new financing to secure sustainable development and climate goals.

Signed,

Marion Williams – former Governor of the Central Bank of Barbados

Atiur Rahman – former Governor of the Bangladesh Bank

Salehuddin Ahmed – former Governor of the Bangladesh Bank

Luiz Carlos Bresser-Pereira – former Finance Minister of Brazil

Nelson Barbosa – former Finance Minister of Brazil

Roberto Zahler – former Governor of the Central Bank of Chile

Jose Antonio Ocampo – former Finance Minister of Colombia

Hans Eichel – former Finance Minister of Germany

Patrick Honohan – former Governor of the Central Bank of Ireland

Y.V. Reddy – former Governor of the Reserve Bank of India

D. Subbarao – former Governor of the Reserve Bank of India

Rakesh Mohan – former Deputy Governor of the Reserve Bank of India

Njuguna Ndung’u– former Governor of the Central Bank of Kenya

Andrew Mullei – former Governor of the Central Bank of Kenya

Fazeel Najeeb – former Governor of the Maldives Monetary Authority

Sanusi Lamido Sanusi – former Governor of the Central Bank of Nigeria

Shamshad Akhtar – former Finance Minister of Pakistan and State Bank of Pakistan Governor

Oscar Dancourt – former Governor of the Central Bank of Peru

Jean-Paul Adam – former Finance Minister of Seychelles

Momodu Kargbo – former Finance Minister and Governor of the Bank of Sierra Leone

Rob Davies – former Minister of Trade and Industry for South Africa

Chalongphob Sussangkarn – Former Finance Minister of Thailand

Louis Kasekende – former Deputy Governor of the Bank of Uganda

Note: The statement was featured in the Financial Times

Categories
Publications

The G20 Debt Plan Does Not Go Far Enough

The COVID-19 crisis has come at the worst possible time for humanity. The poorest countries were already struggling to meet their development goals in the face of cyclones, wildfires, and droughts, and the world now has only a decade left to slow down increases in global temperature and sea levels before they become catastrophic, and invest in climate-resilient development.

Categories
Events

Gordon Brown’s Keynote at the Launch of the Report

Transcript of the video provided by Gordon Brown, United Nations Special Envoy for Global Education and former Prime Minister of the United Kingdom, for the launch of the report “Debt relief for a Green and Inclusive Recovery”

This conference today is of utmost importance, and in the month that we have found that we have an American president committed to net carbon zero by 2050 and a Chinese president committed to net carbon zero by 2060, this meeting is of great global significance as we fashion the new building blocks to take us there.

Categories
Press

Press Release on occasion of launch of DRGR-Report

New report demands G20 to go beyond recent announcements and tackle the escalating debt, pandemic and climate crisis.

Public launch event on Monday, November 16, 2 PM GMT / 9 AM EST, with appearances from the Hon. Mia Amor Mottley, Prime Minister and Finance Minister of Barbados, and former UK Prime Minister Gordon Brown. Register to attend or Direct Livestream.

A report launched today calls on the G20 to move beyond the Common Framework for Debt Treatments announced last Friday and to require public and private creditors to provide a substantial debt cut to a broad set of low- and middle-income countries, in exchange for a commitment to use some of the newfound fiscal space for a green and inclusive recovery.