WHY WE MUST DEFUSE THE DEBT THREAT

Abstract

Developing country debt is back in the news. Public figures such as Gordon Brown, and celebrities such as the rock star Bono are calling for it's cancellation. But what should a debt cancellation program look like? Upon what bases should countries be eligible for debt cancellation? How should the culpability of donors for the developing world debt crisis be addressed? How can debt savings be ring-fenced so that they reach the constituencies who most need them? And will the cancellation of debt on its own suffice? These are the questions Noreena Hertz addresses in this paper.