GDP Center Hosts Webinar on Debt Relief for Middle-Income Countries
On June 1, 2021, the Global Development Policy (GDP) Center, an affiliated regional center at the Frederick S. Pardee School of Global Studies at Boston University, hosted a webinar discussing debt relief for middle-income countries (MIC) and the landscape that has left them vulnerable to potential external debt crises. The event was co-hosted with the Italian Institute for International Political Studies (ISPI) and the T20 National Coordinator and Chair in cooperation with the Creco Research Institute, the Centre for Social and Economic Progress, the Group of 24, the Centre for Finance and Development at the Graduate Institute of International and Development Studies, the Labour 20, and LPEM FEB UI.
The event was moderated by Kevin Gallagher – Pardee School Professor of Global Development Policy, Director of the GDP Center, and Co-Chair of the T20 TF9 on International Finance. The panelists included Avinash Persaud, Special Advisor on Investment and Economic Matters to the Prime Minister of Barbados, Rakesh Mohan, President and Distinguished Fellow of the Centre for Social and Economic Progress (CSEP) in India, Carmen Reinhart, Vice President and Chief Economist of the World Bank Group, Shamshad Akhtar, Chairperson of the Pakistan Stock Exchange and Franco Bruni, Vice President of the ISPI and lead co-chair of T20 Italy TF9 on International Finance.
The event brought together varied proposals from MICs and the international community to address the MICs’ external debt challenges. The panelists pointed out the difficulties in inducing private sector participation in debt restructuring and debt relief and discussed different approaches to addressing this issue. The fiscal inability of MICs to make effective natural disaster responses was identified as another key concern. As action against climate change should be a shared concern of the international community, the panelists called for proper incorporation of environmental concerns and the inclusion of force majeure clauses in the debt restructuring process, and the establishment of new facilities that may be needed to help service the increasing debt stocks of MICs.
A recording of the event can be viewed below. A detailed write-up of the webinar is available on the GDP Center’s website.
The GDP Center is a university-wide research center affiliated with the Pardee School of Global Studies. The GDP Center’s mission is to advance policy-oriented research for financial stability, human well-being, and environmental sustainability. Visit the GDP Center’s website for more.