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The global debt crisis

Why are many developing countries on the verge of defaulting?

This month the G20 came under criticism for failing to deliver a promised $100bn of additional funds to poorer countries to help with the economic fallout of the pandemic. Many of these countries suffered a significant financial crunch as their exports dropped while the price of imports went up. The World Bank says the recession of 2020 led to the largest single-year surge in global debt in decades. The Bank says the debt burden of 70 low income countries has risen by more than 12 percent. Countries that are considered middle-income and have relatively stable economies have also been hit. Last month Sri Lanka appealed to China, one of its biggest creditors, to reschedule its debts. Its foreign reserve shortage has led to a sharp reduction of oil imports, resulting in regular power cuts and further undermining economic activity. So how did the pandemic worsen the debt crisis? How much of the problem can be blamed on long-term economic mismanagement and corruption? And what should be the role of creditors like China, which has been criticised for the way it negotiates debt relief.

Join Ritula Shah is joined by a panel of experts.
Producers: Paul Schuster and Junaid Ahmed

Available now

49 minutes

Last on

Sun 27 Feb 2022 20:06GMT

Contributors

Kevin Watkins - Visiting Professor, Development Practice, London School of Economics; former Chief Executive, Save the Children

Iolanda Fresnillo - Debt Justice Spokesperson, European Network on Debt and Development (Eurodad)

Gabriel Sterne - Head of global strategy and emerging markets research, Oxford Economics; former Economist, IMF

Featuring:

础尘颈迟补听础谤耻诲辫谤补驳补蝉补尘听- Economic policy analyst in Sri Lanka

Rachel Ziemba - Adjunct Senior Fellow, Energy, Economics, & Security Program, Center for a New American Security

Picture

A demonstrator holds up a flare during a protest against the Argentinian government's debt agreement with the International Monetary Fund (IMF), in Buenos Aires, Argentina. Credit: Reuters / Mariana Nedelcu

Broadcasts

  • Fri 25 Feb 2022 10:06GMT
  • Sat 26 Feb 2022 04:06GMT
  • Sat 26 Feb 2022 15:06GMT
  • Sun 27 Feb 2022 20:06GMT

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