The Global Financial Architecture and the International Debt Crisis: An Urgent Call for Reform
Low- and middle-income countries (LMICs), home to 40 per cent of the world’s poorest, are either experiencing debt distress or are at high risk of doing so. Despite the adverse implications this has for governments pressed to meet expenditures needed to achieve the Sustainable Development Goals (SDGs) and combat climate change, default on debt service commitments seems inevitable, with defaults already declared in Sri Lanka, Ghana and Zambia. C.P. Chandrasekhar and Charles Abugre note in their article for the
Bretton Woods Project, that efforts at resolution are plagued by delay and are often ineffective when undertaken. They ascribe this largely to unreformed international financial institutions and a lack of creditor support. Also, often debt restructuring efforts start in earnest only after default, as the three countries flagged above indicate. The need for reform is urgent and the role of civil society organisations in driving that reform is crucial.
https://www.brettonwoodsproject.org/wp-content/uploads/2023/03/Spring-2023-IDEAS-civil-society-participation-on-Debt-FINAL-web.pdf
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