Leaders like President Mahama of Ghana are building the architecture for a new kind of cooperation – a global reset anchored in country-led growth powered by domestic resources and private investment.
On its face, however, this inspirational message seems in sharp contrast to economic reality. More than half of developing countries face liquidity and financing challenges that are making it difficult to finance basic expenditures, let alone the investment needed for growth. As global borrowing costs soar, the current crisis of fiscal space and affordable financing risks morphing into a new wave of full-blown debt crises.
It is not hopeless. Working together, the international financial institutions, borrower and creditor…