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Debt Relief For a Green And Inclusive Recovery

Debt Relief For a Green And Inclusive Recovery:

Reports by Debt Relief for a Green and Inclusive Recovery (DRGR) show that the debt of emerging markets & developing economies rose by 178% from 2008-2022.

Reports findings: –

  • The sovereign debt of emerging markets and developing economies (EDME) increased by 178 per cent, from $1.4 trillion to $3.9 trillion, between 2008-2021.
  • Global South is staring at a debt crisis, but the “Common Framework” created to provide debt relief has serious shortcomings.
  • EDMEs are seeing weakened economic growth due to a slow recovery from the COVID-19 pandemic as well as high food and energy prices fuelled by Russia’s war in Ukraine.
  • Escalating climate impacts have added to the financial burden of these countries.
  • A strong US dollar and depreciating currencies for many EMDEs have exacerbated the problem.
  • These shocks have weakened economic growth and ballooned debt burdens.
  • The authors of the new report called for a reform of the Common Framework.

Debt Relief for a Green and Inclusive Recovery (DRGR):-

  • The Debt Relief for Green and Inclusive Recovery (DRGR) Project is a collaboration between the Boston University Global Development Center, Heinrich-Böll-Stiftung and the Centre for Sustainable Finance, SOAS University of London.
  • Objective is to advance innovative solutions to address the looming sovereign debt crisis.