In view of the enormous government and issuing banks
refinancing programmes, together with the comprehensive economic stimulation
measures, there is a long-term threat of enormous budget deficits and mounting
public debt, primarily in the industrialised countries. How to cope with this
issue is a primary element of public economy and political debate.
Only in narrow interested circles is the problem of the
foreign debt of developing countries still the subject of debate and review
whereby the burden of debt for many of the poorer countries does seem to be
accentuated. In 2008, according to the IMF, the total burden of debt of all the
developing countries mounted by a further USD 220 billion to USD 4,529
billion47 and will, according to predictions, continue to rise in the coming
years.
In their latest progress report on the initiative in favour
of Heavily Indebted Poor Countries (HIPCs) (IMF and World Bank 2009) the IMF
and the World Bank did post further progress. But they simultaneously warned
that in a number of countries the debt vulnerability has risen sharply, namely
in high-risk countries like Afghanistan, but also in Ethiopia, Malawi, Mali,
Mauritania, Nicaragua and Sierra Leone.
Within the frame of their debt sustainability programme, the
IMF voted for a “flexibilisation” of the debt limits for poorer countries so
that they could incur higher debts.48 The Friedrich Ebert Foundation feels that
this is on a par with disbanding the fire brigade when a fire is imminent
(Kaiser, Knoke, and Kowsky 2009). All HIPCs would be exposed to at least a
moderate risk of being involved in any future debt crisis. Half of the
countries are still so severely burdened by old debts that their risk is very
high or high. This menacing time bomb is allowed only an insignificant place in
the ongoing discussion.
No comments:
Post a Comment