African countries’ large and growing debt burdens have become a major obstacle to poverty reduction. Western countries must stop exacerbating the continent’s problems and offer debt relief by substituting grants for loans and forcing private lenders to settle sovereign-debt disputes in borrower-country courts.
CAMBRIDGE – How long can the complacent West continue to ignore Africa’s sovereign-debt crisis? As African countries grapple with unsustainable debt burdens, restructuring negotiations with Western governments and multilateral institutions such as the International Monetary Fund have stalled. While forgiveness is essential, it is important to bear in mind that a significant share of Africa’s foreign debt is held by private lenders and China, neither of which has shown much willingness to offer relief.
CAMBRIDGE – How long can the complacent West continue to ignore Africa’s sovereign-debt crisis? As African countries grapple with unsustainable debt burdens, restructuring negotiations with Western governments and multilateral institutions such as the International Monetary Fund have stalled. While forgiveness is essential, it is important to bear in mind that a significant share of Africa’s foreign debt is held by private lenders and China, neither of which has shown much willingness to offer relief.