THE GROWING DEBT BURDENS OF GLOBAL SOUTH COUNTRIES: STANDING IN THE WAY OF CLIMATE AND DEVELOPMENT GOALS
THE GROWING DEBT BURDENS OF GLOBAL SOUTH COUNTRIES: STANDING IN THE WAY OF CLIMATE AND DEVELOPMENT GOALS

Summary/Abstract: This paper analyses the available data on external debt burdens of low- and middle-income countries and identifies 79 countries that are considered by international institutions as being in or at risk of debt distress. In the context of the ongoing climate crisis, high debt burdens hamper the ability of these country to invest in climate resilience. This paper shows the effects that servicing debt has on these countries’ ability to respond to climate disasters, as well as provide services to their population. The paper shows how developing countries are trapped in a vicious cycle, which keeps them indebted and perpetuates vulnerability to the effects of climate change, as well as hampering their development path. The response so far from the international financial community has been inadequate to help countries break this vicious cycle.

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