Day: February 27, 2023

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It’s Time to Stop Pretending the System Still Works

In hindsight, it was foolish to think that China, the U.S., India and the Europeans were somehow going to put aside their differences to make desperately-needed compromises to help the world's poorest countries restructure their debts. We should have known this ...

Lots of Talk, Little Consensus and No Action Following G20 Debt Roundtable Discussion Among G20 Finance Ministers

The world's most powerful finance ministers, central bank heads and development finance leaders met on Saturday in Bengaluru, India for a highly-anticipated roundtable that many hoped would unblock the current impasse on debt relief for poor countries. While debt ...

U.S. Discussed Debt Issues With China While Also Hinting Beijing Uses Loans for “Coercive Leverage” in South Asia

There was a hint of optimism going into Saturday's debt roundtable organized by India, the World Bank and the IMF that the U.S. and China might be able to find some common ground. Deputy-level officials from both countries met on Friday, 

Xinhua: The U.S. Deliberately Distorts Chinas’s Role in the African Debt Crisis

The burgeoning debt crisis in a growing number of African countries is increasingly seen by the Chinese government as another front in Beijing's competition with Western powers like the U.S. A recent article published earlier this month by the official Xinhua ...

When it Comes to the Global South Debt Crisis, the Chinese Message is Clear: Don’t Talk About China, Just Focus on the West

Chinese scholars and U.S. and European officials seem to follow the same playbook on debt. Both sides are highly selective in their assessment of the worsening debt crisis in developing countries by focusing disproportionate attention on opponents' role while conveniently overlooking their own contribution to the problem. ...

Analysis from Cobus van Staden

How to Lure Chinese Financing Back to the Global South: Report

Global South countries face increasing financing pressure, endangering their ability to keep developing while also implementing measures to deal with a growing climate crisis. The disruption of global trade is coupled with a larger megatrend: flows of international capital to the developing world have turned negative. This means that countries are now routinely paying more to service loans than they receive in disbursements.

The vast majority of Global South borrowers ...

Gyude Moore: Future of Global Development Finance System at Risk if China Wins Stand-off With IMF, World Bank

If China is successful in its effort to force multilateral development banks (MDB) like the World Bank and the International Monetary Fund to accept the same kind of writedowns (known as 'haircuts') on loans to poor countries as other lenders, it would endanger the entire global development ...