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.