Despite the slight recovery of the global economic situation in 2021 before the beginning of the Ukraine war, the debt situation in the majority of countries in the Global South remains tense. While policy-makers are calling for the improvement of debt relief procedures, the interests of different creditor groups are blocking speedy progress.
In 136 out of 152 countries surveyed in the Global South the debt situation is critical. In 40 it is even very critical. Projections show that the situation will further deteriorate as a result of the Ukraine war and the global rise in interest rates.
While 37% of the countries in the Global South were critically or very critically indebted before the outbreak of the COVID-19 pandemic, this share now amounts to 64%. Particularly affected are the regions of Latin America and the Caribbean and Sub-Saharan Africa. Around three quarters of the countries surveyed in these regions are in a critical or very critical situation.
G7 and EU states, including Germany, have a special political responsibility towards the group of very critically indebted countries, as 58% of outstanding claims can be directly or indirectly attributed to them.
The Global Sovereign Debt Monitor 2023, published by erlassjahr.de and Misereor, analyzes the debt situation of countries in the Global South as well as Germany’s role in international debt relief policy and presents concrete recommendations and options for political action.
Download:
Global Sovereign Debt Monitor 2023 (PDF)
Map Global Debt Situation (JPG)
Supplementary material to Article “Creditors worldwide”: Table 2 “Creditor’s share in the total external public debt of critically indebted countries, and groups of countries bearing primary political responsibility”
Contents:
It’s time to stop waiting and start taking action: What Germany needs to do now to solve the debt crisis in the Global South
Foreword by Pirmin Spiegel and Petra Aschoff
The global debt situation
by Malina Stutz
Creditors worldwide: An analysis of the creditor landscape and political responsibility for debt relief
by Malina Stutz
Dare to take more responsibility: The role of the IMF in delaying debt crises resolutions
by Kristina Rehbein
Ukraine: Fight now – pay later: An analysis of the debt level and options for debt relief
by Jürgen Kaiser
The power of legislation: How national legislation can contribute to a fair solution for the global debt crisis
by Malina Stutz
From the Common Framework to a sovereign insolvency process? Reform steps towards a new debt management consensus
by Kristina Rehbein and Dr Klaus Schilder
Editors:
erlassjahr.de and Misereor
Publication date:
April 2023
Download:
Global Sovereign Debt Monitor 2023 (PDF)
Originally published as: Schuldenreport 2023 (in German, March 2023)