Abstract
The global economic system has bankruptcy laws for companies and individuals, yet no such framework exists for sovereign nations. When countries face debt distress, the process is often unpredictable, slow, and yields insufficient outcomes. There is growing consensus that the global debt architecture is failing and urgently needs reform—particularly its debt resolution mechanisms, long criticized for doing too little too late. As we mark 25 years of the 21st century, the call for resetting the debt clock to zero—or at least significantly reducing debt burdens—has never been more pressing. By Abel Gwaindepi, Senior Researcher DIIS, Sustainable development and governance.
Translated title of the contribution | 25 years in: Now is the time to reset the debt clock to zero for poorer countries |
---|---|
Original language | Danish |
Journal | Katolsk Indblik |
Volume | 2025 |
Issue number | 1 |
Pages (from-to) | 15-17 |
Number of pages | 3 |
ISSN | 2794-7696 |
Publication status | Published - Feb 2025 |
Keywords
- Global debt crisis
- Economic inequality
- Climate finance
- Development economics