The new developing world debt crisis

  • A new debt crisis has begun in impoverished countries. The UK needs to take responsibility now for the debt contracted under English law.

Read the 4 page briefing here.

Summary

A new debt crisis has begun in impoverished countries, with Mozambique, Chad, Congo and Gambia unable to pay debts.

Unless dealt with effectively, the crisis could cause increasing poverty and declining public service provision, as happened in the 1980s and 1990s.

The crisis comes from a boom in lending and borrowing since the global financial crisis, followed by the crash in the price of commodity exports.

Structural changes are needed to the global economy to prevent the cycle of crises, including better regulation of lenders, tax justice and enabling countries to be less dependent on commodity exports.

But the UK needs to take responsibility now for the large amount of debt contracted under English law, and to ensure loans are transparent

Read the 4 page briefing here.

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