Between 2022 and 2023 Red Sur implemented the project ‘Promoting a pandemic recovery: evidence to support managing the growing debt crisis’ in partnership with IDRC and research centers in LAC and Africa. This Policy Brief was selected by the T20 Brazil 2024, among others, as a result of the T20 call for proposals.
Abstract: The global economy has experienced unprecedented challenges posed by the pandemic. Central to these enduring repercussions is the escalation of public debt, casting a shadow over the fiscal space of governments and their ability to make progress in achieving the Sustainable Development Goals (SDGs) and address the growing impacts of climate change. It is thus urgent to reconsider debt restructuring strategies, the conditionalities associated with International Financial Institutions’ loans, and emerging fiscal frameworks for the developing world. In this policy brief, authors develop four concrete proposals involving international financial institutions, which can function as avenues to tackle the challenges mentioned above:
(a) alternative ways to define “sustainability” in international financial institutions’ debt analysis;
(b) to promote debt-for-climate swaps;
(c) support the implementation of green tax reforms; and
(d) support government implementing non-regressive tax reforms.
Click here to access all T20 Brazil published Policy Briefs, from Task Forces 01 to 06.