Initiative for Policy Dialogue and the South Centre Working Paper, March 2013

This paper: (i) examines the latest IMF government spending projections for 181 countries by comparing the four distinct periods of 2005-07 (pre-crisis), 2008-09 (crisis phase I: fiscal expansion), 2010-12 (crisis phase II: onset of fiscal contraction) and 2013-15 (crisis phase III: intensification of fiscal contraction); (ii) reviews 314 IMF country reports in 174 countries to identify the main adjustment measures considered in high-income and developing countries; (iv) discusses the threats of austerity to development goals and social progress; and (v) calls for urgent action by governments to adopt alternative and equitable policies for socio-economic recovery.

Due to the global economic situation, many countries around the world are either facing debt crises or on the verge of falling into one.

This issue of South Bulletin focuses on resolving the debt crises, especially through the setting up of an international debt resolution mechanism, an idea whose time has come.

Policy Brief, November 2012

Because of the absence of a multilaterally agreed legal system for debt workouts, the practice tends to be ad hoc and disorderly, generally favouring creditors. Often the IMF is involved in coordinating and resolving debt servicing difficulties, be it due to solvency or liquidity problems, based on an adjustment programme agreed with the debtor country.

South Bulletin Issue 38 (7 July 2009) Articles

Article 1: Click  here to download

 By Dr. Yilmaz Akyüz

 

5 April 2009

Although the G20 Summit in London was publicised as providing $1 trillion for developing countries, in fact the extra funds are much less.  Moreover, the IMF is to get more resources but without undergoing the necessary reforms. South Centre's Executive Director, Martin Khor, commented on the G20 Summit in London on 2 April.

 

South Centre Analytical Note - September 2002

SUMMARY

The existence of a relationship between trade and debt is a contentious issue. In fact, a clear divide exists between developed and developing countries regarding the subject, a division which has necessitated the formation of the Working Group on Trade, Debt, and Finance (WGTDF) within the World Trade Organization (WTO).

This paper is of the opinion that such a relationship does exist and that it has been and continues to be of a particularly negative nature. The problem of large debt overhangs in developing countries is unequivocally a result of the particular circumstances of their terms of trade within the international economic system. For this reason, the objective of this paper is to examine the impact of world trade conditions on the increasing debt burden, and the effect of external indebtedness on the trade performance of developing countries with a view to providing remedial measures and flexibilities within WTO provisions.

 click here to download