Center for Global Development’s Post

In the face of the fiscal impasse, how can the #UEMOA countries finance public investment scaling up while targeting debt sustainability on the horizon?...Each country need to put the pieces together! This is what my recent publication in the #InternationalEconomicJournal enlightens us on. Enjoy reading! https://lnkd.in/gAYHZdV5

Entering 2024, multiple forums are debating reforms to the international financial architecture to resolve developing country debt problems. These forums should start by identifying the different problems that need to be solved. In this paper, we argue that there are four distinct debt-related questions that developing countries are confronting, each of which merits its own response: (i) how to meet current debt service obligations; (ii) how to open fiscal space for debt-financed sustainable infrastructure and other priority development investments; (iii) how to best use debt in responding to natural disasters; and (iv) how to improve debt transparency to better the overall functioning of global capital markets. https://lnkd.in/eHCNSSpR

Rising debt vulnerabilities in many African countries following repeated external and domestic shocks require to rethink fiscal policy in the region. Under unchanged policies, the region’s public debt-to-GDP ratio will continue to trend upward, increasing by over 10 percentage points over the next five years, crowding out private investment, raising sovereign risk, and limiting countries’ ability to invest in human and physical capital and to respond to future shocks. The design of credible medium-term fiscal strategies could help preserve fiscal sustainability and rebuild buffers while addressing the region’s development goals. This year’s African Fiscal Forum will discuss how to set fiscal targets and determine the pace and composition of the potential adjustment depending on countries’ specific circumstances. The discussion will also explore the role of institutions in addressing implementation challenges and how those institutions can be strengthened. The African Fiscal Forum is an annual event organized by the International Monetary Fund, in partnership with the European Commission, as part of the European Union-IMF Public Financial Management Partnership Program. Watch on March 12, 2024, at 9am ET https://lnkd.in/eRD6WATw Dominique Desruelle Franck Bousquet Peter Kunzel Benoît Wiest Demet Cabbar Marion Muscat Koen DOENS Prof. Njuguna Ndung'u, CBS Fati N'zi-Hassane International Monetary Fund

Symposium on IFFs: Perpetual Financial Drain: Assessing the Effect of Abusive Corporate Tax Practices in Exacerbating Africa's Illicit Financial Flows, Debt Burden, and Under-development. “Focusing on limiting IFF is a much better option for providing African countries with the necessary funds towards achieving Agenda 2063 and the United Nations Sustainable Development Goals.” Marie-Louise Fehun Aren https://lnkd.in/eYFPu5uD

The catalytic role of infrastructure in economic development is well understood and for decades, governments, development agencies and banks have spent trillions on infrastructure development programmes. Yet today, low- and middle-income countries still find themselves short of funding solutions as well as bankable projects. My Deloitte colleague Trystan Peckover has written this excellent blog on sustainably bridging the infrastructure finance gap in emerging economies and asks, are multilateral development banks the answer? #majorprogrammes #businesswithpurpose https://lnkd.in/eUX-AfXs

EU agrees on looser fiscal rules to cut debt, boost investments EU member states and MEPs struck a preliminary deal on Saturday to ease the bloc's stringent fiscal rules, giving governments more time to reduce debt as well as incentives to boost public investments in climate, industrial policy and security. read more https://lnkd.in/dgw5_pgu #europe #investments #incentives #climate #government #industrial #reuters

Hidden debt significantly endangers global economies 🌍, especially harming low-income nations 📉. The key to mitigating this risk lies in fostering transparency 🔍 by updating domestic laws, ensuring that all public financial obligations are openly disclosed. Discover more about our proposed solutions and their potential impact🔗 https://bit.ly/49hg7zW International Monetary Fund #DebtTransparency #GlobalEconomies #LegalReform #PublicFinance #EconomicJustice

Australian financial markets have reached a new milestone. Government debt is now being issued to drive bold action on the environment. This month, the federal government issued Australia’s first sovereign green bond to back projects supporting the net-zero transition. ISF Research Director Gordon Noble has penned an article for The Conversation Australia + NZ on sustainable finance. Read more: https://ow.ly/hXg850SeYyn #SustainableFinance #GreenFinance #ClimateAction #Research #Sustainability

This is the very definition of thinking INSIDE the box. The current global financial system is broken, so they come up with a plan to use the broken system to fix the broken system. The current plan calls for a big batch of quantitative easing specially designed for developing countries. However, more debt is not the answer, neither are carbon credits nor electric vehicles. The answer lies in these three simple changes: forgive all Government debt, allow for unlimited Government spending (and the elimination of taxes), and make all currencies equal. Under this system, Governments can spend what they need to achieve full employment, and since Governments don't need to collect money anymore, there would be no need for taxes. These three changes would rejuvenate the global financial industry (based on capital flow, not debt), and provide the capital Governments require to save the planet at scale.

Developing countries are being blamed for having borrowed and spent irresponsibly. But they have only been doing what foreign powers and financial interests have urged them to do. Since the 2008 global financial crisis, developing nations have been told to borrow massively from private finance, even at exorbitant interest rates, to scale funding up 'from billions to trillions'. With progress towards sustainable development often in reverse, servicing external debt now blocks progress. Many governments have