Over 60 per cent of low-income countries and more than 25 percent of emerging market economies are in or at risk of debt distress, and are in danger of being unable to fulfil their fiscal obligations.
The Indonesian Minister of Finance Sri Mulyani Indrawati acknowledged the G20 faced "many challenges" and "differences in view", with "escalating geopolitical conflicts worsening the economic situation.”
The sovereign debt crises threatening states in the Global South are less about fiscal mismanagement and more about monetary power in the global currency hierarchy.
As geopolitical tensions rise amidst worsening global economic conditions, civil society demands the democratisation of a world economic order away from the established Global North and elite capitalist hegemony.
This Inside the Institutions looks at the World Bank and International Monetary Fund Annual Meetings, one of two official yearly events bringing together BWI governors, officials, civil society, academics and journalists to discuss major economic developments and global governance.
G24 finance ministers called for urgent global action to mitigate the effects of rising debt levels in emerging economies, and rising global food, energy and commodity prices.
This Inside the Institutions provides an overview of one of the World Bank’s most controversial types of lending, Development Policy Financing, and outlines some key critiques of the instrument.
As the inability of Bank and Fund to adapt their policies in response to the Covid-19 pandemic becomes more evident, hope turns to the UN system and a radical restructure of the global international financial architecture.
Early evidence suggests IMF programmes are maintaining long-term fiscal consolidation targets, while World Bank further continues Maximizing Finance for Development narrative amidst Covid-19 crisis.
Covid-19 pandemic highlights the urgent need for ICSID and wider ISDS reforms as cases threaten to undermine state efforts to protect public health.