Why Debt Relief Matters to the Wealthy West
Worldwide, poverty is increasinglyconcentrated in around forty fragile states. The deepening debtcrisis, if unresolved, will increase both the number of the world’s poor statesand the number of fragile states, warns Erica Hogan in her article for the
CarnegieEndowment for International Peace. The debt crisis, if unaddressed,will likely add to already high levels of irregular migration by deepeningpoverty and undermining efforts at climate adaptation and resilience in highlyindebted countries. To unlock the potential mutual benefits to debtor andcreditor nations through debt reform and ensure that debt crises do not recuramong low- and middle-income countries (LMICs), the world needs to shift beyondlargely employing debt forgiveness to more aggressively reforming thedevelopment financing landscape. Finally, debt reform could pay geopoliticaldividends for Western countries, such as stronger diplomatic ties with LMICsand diminished Chinese and Russian influence.
https://carnegieendowment.org
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