Achieving the Sustainable Development Goals requires significant investment—in infrastructure, human capital, and climate change resilience, among other areas. But governments in developing countries are often limited in their ability to mobilize domestic revenues or private investment, while external grants are scarce.
Debt financing is critical for development. But it must be transparent, well-managed, and used in the context of a credible growth strategy. Yet, too often, this is not the case. Public debt at unsustainable levels harms growth, with consequences to the most vulnerable citizens. It can inhibit private investment, increase pressures on social and infrastructure spending, and limit governments’ ability to…
