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Blog

No Time for Lost Decade

A Call by DRGR Co-author Kevin P. Gallagher, Boston University

Fallout from the COVID-19 pandemic and Russia’s war in Ukraine will require large scale sovereign debt restructuring to prevent another lost decade of development for many emerging markets and developing countries; during the same ten years they urgently need to mobilize trillions of dollars to combat and adapt to climate change.

Just before the Russian invasion of Ukraine, the World Bank sounded the alarm that fiscal and monetary tightening in the advanced economies could lead to another sudden stop in capital flows to emerging markets and developing countries, followed by capital flight, exchange rate depreciation, and debt crises.

War only makes matters worse, as many emerging market and developing countries will suffer from skyrocketing oil, gas, and grain prices. Worse still, a default on Russia’s or Ukraine’s bonds could amplify that same cycle of depreciation and crisis.

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Blog

New York Times Refers to DRGR in Comprehensive Article on Green Debt Relief

In the midst of the annual Spring Meetings of the International Monetary Fund and the World Bank Group, the NY Times published an article on the “systemic risk” debt and climate change pose on the world economy, quoting the DRGR proposal.

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Events

Video: Dev Talk – “Using Debt-for-Climate Swaps to Solve Two Crises at Once”

This Dev Talk, jointly hosted by the OECD Development Centre and the Boston University Global Development Policy Center, examined what debt-for-climate swaps entail and whether they can deliver with a speed and scale commensurate with the urgency of both crises.
Watch the webinar recording here.