Reform of the Global Debt Governance System
The recent global financial crises and the debt crises in developing countries in previous decades have pointed to the need for a reform of the current global debt governance (GDG) structures, which have often led to delayed, disorderly and inefficient debt restructuring processes. The objective of the project is to design an appropriate GDG framework for developing countries including instruments for crisis prevention and resolution.
Project Lead:
Kathrin Berensmann
Financing:
Federal Ministry for Economic Cooperation and Development (BMZ)
Time frame:
2011 - 2015
/
completed
Project description
On the one hand, such ad hoc debt relief initiatives as the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI) in the past decade have substantially reduced external debt in many low-income countries. Similarly, the Debt Sustainability Framework of the World Bank (WB) and International Monetary Fund (IMF), the IMF’s Debt Limit Policy and the Non-Concessional Borrowing Policy of the WB have helped to prevent debt distress in LICs.
On the other hand, many developing countries still have difficulties in attaining long-term debt sustainability. After assessing the current GDG system for developing countries, this project makes proposals for its reform with respect both to crisis prevention and resolution. On the whole, the international community should develop a coherent Global Debt Governance System which links instruments for crisis prevention and resolution.
Publications
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An insolvency procedure for sovereign states: a viable instrument for preventing and resolving debt crises?
Berensmann, Kathrin / Angélique Herzberg (2011)
in: Robert W. Kolb (ed.), Sovereign debt: from safety to default, Chciago: Wiley, 379-386 -
Learning from the Greek fiasco: we need an insolvency procedure for states
Berensmann, Kathrin (2011)
Bonn: German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE) (The current column of 18 July 2011) -
A code of conduct for sovereign debt restructuring: an important component of the international financial architecture?
Berensmann, Kathrin (2011)
in: Robert W. Kolb (ed.), Sovereign debt: from safety to default, Chicago: Wiley, 197-204 -
Es hätte schlimmer kommen können
Berensmann, Kathrin (2010)
in: Entwicklung und Zusammenarbeit 51 (12), 469-471 -
Braucht Europa eine Insolvenzordnung
Berensmann, Kathrin (2010)
in: ifo Schnelldienst 23/2010, 11-15 -
How to prevent and resolve debt crises in LICs?
Berensmann, Kathrin (2010)
Discussion Paper 1/2010 -
Verschuldungskrisen in Entwicklungsländern: Ursachen, bisherige Lösungsansätze und aktuelle Herausforderungen
Berensmann, Kathrin (2013)
in: Hartmut Ihne / Jürgen Wilhelm (Hrsg), Einführung in die Entwicklungspolitik, 3. Aufl., Münster Lit Verl., 89-102