Abstract
The paper’s main objective is to analyze the social sustainability of the external public debt of some MENA countries, namely, Egypt, Lebanon, Morocco, Tunisia, and Turkey between 1990 and 2018. The study carries out a dual statistical and econometric analysis to determine the impact of external public debt on the population welfare. The first analysis aims to examine the evolution of the debt social sustainability indicators and the second uses the Auto Regressive Distributed Lag (ARDL) panel data estimation technique.
 
 Statistical analysis reveals that the external public debt service weighs heavily on public spending in health, education, and public investment. While the econometric study establishes that the ratio of external public debt as a percentage of Gross Domestic Product (GDP) has a negative effect on the population’s standards of living.
 
 The study concludes that external public debt in MENA countries has been used to finance non-productive expenditures, which have no effect on the population’s living conditions. It highlights the need to consider the views of both debtors and creditors to achieve a comprehensive and sustainable approach to public debt. The latter should integrate the social and environmental consequences of debt on the well-being and living conditions of the population.
Highlights
During the last decade, both developed and developing countries had experienced high levels of public debt
The observation of figure 2 shows that Tunisia and Turkey have shares of service debt in Gross Domestic Product (GDP) per capita that exceed the average of the study sample
According to Pesaran et al (2001), several studies have highlighted the simplicity of the Auto Regressive Distributed Lag (ARDL) approach, which makes it possible to analyze the nature of the long- and short-term relationship between the different variables
Summary
Both developed and developing countries had experienced high levels of public debt. The issue of developing countries' indebtedness is being addressed from a new perspective that of the co-responsibility of creditor and debtor countries in debt sustainability In this context, the United Nations has appointed an independent expert to examine the effects of foreign debt on the economic, social, and cultural rights of developing countries. In addition to the traditional principles that were reiterated, the resolution emphasized the concept of sustainability as a fundamental principle of the public debt management process According to this principle, restructuring negotiations should lead to debt stabilization, while safeguarding the rights of creditors and promoting economic growth and sustainable development of the debtor country. The social sustainability analysis of the external public debt of MENA countries is more than necessary since these economies had faced major socio-political instability during several years Such a study could help the national authorities to define new debt management strategies and policies. The conclusion summarizes the main findings and highlights some implications of the study
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
