Beyond Debt Reprofiling: China’s Role in Global South Development
By Marina Zucker-Marques, Rosa He and Tianyi Wu
Since the onset of the COVID-19 pandemic, many developing countries have faced a financial deadlock: they must scale up social and climate spending to support social-economic development, but the lack of fiscal space, and resulting debt distress inhibit new investments. Multilateral solutions such as the G20 Common Framework have been slow and limited—just four countries have applied since its creation —because perceived costs often outweigh expected benefits. This impasse in advancing debt relief hurts both debtors and creditors, private and public sectors:…