By john A silent crisis is gripping the developing world. From Sri Lanka to Zambia, dozens of countries are struggling with unsustainable debt, exposing deep flaws in the global naga169 slot login financial system and triggering new political realignments.
According to the IMF, more than 50 low- and middle-income nations face “debt distress.” Many borrowed heavily during the pandemic to cushion their economies, only to be hit by inflation, high interest rates, and dollar appreciation. Now, the cost of servicing debt consumes national budgets once meant for health and education.
The political fallout is profound. In Ghana and Pakistan, protests over austerity measures have shaken governments. Argentina continues its cycle of bailouts and defaults. Meanwhile, China — now the world’s largest bilateral creditor — faces scrutiny for opaque lending under its Belt and Road projects.
Western powers call for debt transparency, but they too resist systemic reform. Efforts to modernize the G20 Common Framework for Debt Restructuring remain slow. “The world’s poorest countries are caught between Washington and Beijing,” notes economist Joseph Stiglitz.
Multilateral institutions propose new tools, including climate-linked debt swaps and local currency bonds, yet skepticism runs deep. Critics argue that unless global finance is restructured around equity rather than extraction, the 2020s could see a repeat of the 1980s debt crisis — but on a planetary scale.