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.

Projektleitung:
Kathrin Berensmann

Finanzierung:
Federal Ministry for Economic Cooperation and Development (BMZ)

Von:
2011 - 2015 / ongoing

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.

Publikation

Current Publications

Sustainable public procurement as a tool to foster sustainable development in Costa Rica: challenges and recommendations for policy implementation

Stamm, Andreas / Luise Dietrich / Heike Harling / Laura Häußler / Florian Münch / Jana Preiß / Jan Siebert
Studies 100

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