Rethinking Debt Sustainability to Kickstart Growth

Recent global shocks have exposed significant vulnerabilities in the international financial architecture (IFA), reinforcing the perception that it inadequately supports the most vulnerable communities and fails to meet the needs of low- and middle-income countries (LMICs).

LMICs are currently facing insurmountable debt levels, with 3.3 billion people living in countries that spend more on interest payments than on education or health. In the past five years, several LMICs defaulted on their external debt, including Zambia in 2020, Ghana and Sri Lanka in 2022, and Ethiopia in 2023, leading them to go through lengthy and painful debt restructuring processes.

On Thursday, July 3 from 12:30-14:00 CEST | 6:30-8:00AM EDT, join us, UNU-WIDER and the Chair of the International Committee of Experts for the Financing for Development process, for an Official FFD4 Side Event exploring the impact of debt sustainability analyses on how LMICs tackle not only their debt burden but also their economic growth and sustainable development.

The side event is grounded in a recent UNU-WIDER Statement on the reform of the IFA, which calls for a rethinking of debt sustainability and advocates for long-term, low-cost financing to LMICs to drive growth.

Speakers:

- Kunal Sen, Director, UNU-WIDER

-José Antonio Ocampo, Chair of the International Commission of Experts on Financing for Development

-Kevin Gallagher, Director, Boston University Global Development Policy Center; Lead Expert, Multilateral Development Bank Reform to the G20 Brazilian Presidency

-Attiya Waris, Professor, University of Nairobi; UN Independent Expert on Foreign Debt and Human Rights

-Rose Ngugi | Chair, Southern Voice

- Nicole Goldin, Head Equitable Development, UNU-Centre for Policy Research