Do We Have to Rethink Sovereign Debt of Developing Countries?

2021 ◽  
pp. 499-517
Author(s):  
Wissem Ajili
Keyword(s):  
Developing Countries ◽  
Public Debt ◽  
Sovereign Debt ◽  
Debt Management ◽  
Future Generations ◽  
Social Progress ◽  
Comprehensive Management ◽  
Standards Of Living ◽  
Political Choices ◽  
Ecologically Sustainable

The chapter joins new reflections interested in measuring welfare and social progress. The main objective is to determine whether the sovereign debt management process in developing countries is economically viable, socially equitable, and ecologically sustainable. The analysis advocates rethinking the sovereign debt around the idea of social sustainability, that is, the non-questioning of the living conditions of present and future generations and their economic, social, and political choices. The chapter suggests the need for developing countries (1) to ensure a comprehensive management of public debt based on the co-responsibility of both the indebted countries and their creditors, (2) to borrow in priority to finance the most productive investment expenditures, which can have an impact on the populations' standards of living and on economic prosperity, and (3) to reduce the use of austerity programs and anti-social policies.

Latin America and the Caribbean Standardized Public Debt Database: Data as of December 2019

2020 ◽  
Author(s):  
Keyword(s):  
Latin America ◽  
Financial Markets ◽  
Public Debt ◽  
Sovereign Debt ◽  
Regional Policy ◽  
Debt Management ◽  
Policy Makers ◽  
The Caribbean ◽  
Cross Country ◽  
Clear Objective

The LAC Debt Group believes that to have sound regional policy it is important to have valid, comparable, and standardized data on Latin America and the Caribbean (LAC). Therefore, at the core of the initiative is the development of a standardized sovereign debt database to help debt managers, policy makers, and other actors of financial markets, analyze the composition of public debt in LAC. The information presented in this database is provided by the Debt Management Offices of 26 LAC countries in response to a questionnaire specifically created to allow comparability of data. The questionnaire is intended to compile up-to-date standardized statistics to conduct cross-country comparisons over clear, objective, and homogeneous definitions of public debt.

Helping Developing Countries Address Public Debt Management Challenges - An IMF-World Bank Capacity Building Partnership

Policy Papers ◽  
2013 ◽  
Vol 2013 (39) ◽  
Author(s):  
Keyword(s):  
Developing Countries ◽  
Capacity Building ◽  
World Bank ◽  
Public Debt ◽  
Debt Management ◽  
Medium Term ◽  
Public Debt Management ◽  
Continued Use ◽  
Building Program ◽  
Capacity Building Program

In 2009, the Boards of the IMF and World Bank jointly endorsed a capacity building program to help developing countries strengthen their public debt management frameworks. A key aspect of the program was to help developing countries implement the framework developed by staffs to formulate an effective medium-term debt management strategy (MTDS). The Boards also supported the continued use of the complementary framework—the Debt Management Performance Assessment (DeMPA)—developed in 2007, to assess the effectiveness of the broader institutional arrangements for public debt management. This paper provides an update on the implementation of the program since its endorsement in 2009.

scholarly journals THE DEADLY EMBRACE BETWEEN THE BANKS AND THE STATE IN SPAIN, 1850-2015

2017 ◽  
Vol 35 (3) ◽  
pp. 387-414 ◽  
Author(s):  
Francisco Comín ◽  
Joaquim Cuevas
Keyword(s):  
Public Debt ◽  
Sovereign Debt ◽  
Banking Sector ◽  
Banking Regulation ◽  
The State ◽  
Debt Management ◽  
Stock Exchanges ◽  
Budget Deficits ◽  
Public And Private ◽  
Financial Repression

AbstractThis paper focusses on the financial relations between the banking sector and the Treasury in Modern Spain. Tax systems have been insufficient, generating a chronic budget deficit. This drove to irresponsible public debt management, being the State a serial defaulter until 1987. This prevented the budget deficits could be financed by sovereign debt issued on the stock exchanges, and forced the state to resort to banks (public and private). The new series of public debt banks portfolios evolution is explained by their pursuit of returns and by changes in banking regulation and financial repression, which favoured the bankingstatus quo. The paper analyses the causes of banking regulation, derived from the public borrowing policy and also from the banking lobbying strategy. It examines the consequences of the deadly banking-state embrace which brought about the interconnection between fiscal and banking crises.

scholarly journals The state of global public debt and new approaches towards debt management

2021 ◽  
pp. 46-57
Author(s):  
Svetlana Eduardovna Tsvirko
Keyword(s):  
Developing Countries ◽  
Public Debt ◽  
Risk Mitigation ◽  
Developed Countries ◽  
The State ◽  
Debt Management ◽  
Debt Restructuring ◽  
Middle Income ◽  
New Approaches ◽  
Debt Market

This article is devoted to the state of public global public debt and new approaches towards its regulation in both developed and developing countries. The subject of this research is public debt in different groups of countries. Analysis of the situation with global public debt and the peculiarities of its regulation is necessary to learn positive foreign experience for its possible application in Russia. The following factors of significant increase of public debt are outlined: severe reduction of economic activity and decline in government revenue; increase of public spending, including related to anti-crisis measures; growing primary deficit, and this, the need to increase borrowings. The countries with low and middle income additionally face significant capital outflows from their financial markets, devaluation of national currencies, and difficulties with debt refinancing. Analysis is conducted on the structure and dynamics of public debt that developed due to the COVID-19 pandemic. The author describes the risks associated with public debt. It is noted that many developed countries were able to adjust their financial operations in response to the growing need for borrowed funds: change the existing mechanisms for entering the debt market; amend the practice of conducting auctions government securities auctions. Developing countries need debt restructuring. The conclusion is made that the debt relief process requires new approaches towards debt management, including new methods of risk mitigation, enhanced control aimed at countering “credit bubbles”; clear regulation of debt restructuring observed by all creditors.

scholarly journals Governing for Future Generations: How Political Trust Shapes Attitudes Towards Climate and Debt Policies

2021 ◽  
Vol 3 ◽  
Author(s):  
Malcolm Fairbrother ◽  
Gustaf Arrhenius ◽  
Krister Bykvist ◽  
Tim Campbell
Keyword(s):  
Global Warming ◽  
South Korea ◽  
Public Debt ◽  
Empirical Studies ◽  
Political Trust ◽  
Future Generations ◽  
Public Preferences ◽  
Standards Of Living ◽  
Survey Experiments ◽  
Economic Analyses

Policy decisions, and public preferences about them, often entail judgements about costs people should be willing to pay for the benefit of future generations. Economic analyses discount policies’ future benefits based on expectations about increasing standards of living, while empirical studies in psychology have found future-oriented people are more motivated to protect the environment. In this article, using original surveys and survey experiments in four countries—Sweden, Spain, South Korea, and China—we show that support for future-oriented policies also strongly reflects people’s political trust. Focusing on policies for reducing either global warming or public debt, we find political trust operates on attitudes by shaping people’s (a) confidence in policies’ effectiveness and (b) willingness to sacrifice for others. The influence of political trust outweighs that of subjective concern, while discounting has so little impact that people who expect future generations to be richer are more, not less, willing to sacrifice.

scholarly journals Impact of Shocks to Public Debt and Government Expenditure on Human Capital and Growth in Developing Countries

2014 ◽  
Vol 6 (1) ◽  
pp. 44-67 ◽  
Author(s):  
Grace G. Kgakge-Tabengwa
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Public Debt ◽  
Government Expenditure ◽  
Output Growth ◽  
Sustainable Growth ◽  
Debt Management ◽  
Positive Role ◽  
Fiscal Constraints ◽  
The Government

This paper examines the implications of shocks to public debt and government expenditure on the development of human capital and growth within a model that explicitly recognizes the role of fiscal constraints through introducing the government budget constraint for a set of selected developing countries 1 from 1980-2013. This is mainly to capture fiscal challenges facing developing countries in developing human capital which is fundamental for sustainable growth. The dynamics of our model results reveal that high stocks of public debt, beyond the 30-40% debt/GDP threshold, depress the effect of human capital on output growth through limiting government expenditure resources available for developing human capital. Although we find that government expenditure has a positive role to play in developing human capital, sustainability becomes questionable particularly for countries where there are fiscal constraints. We conclude that developing countries which face fiscal challenges such as high public debt and poor revenue prospects to back government expenditure sustainably, cannot solely develop human capital based on the strength of their domestic resources, underscoring the need for specific supportive global fund for human capital development. The key policy implication calls for public debt management strategies and efficient government expenditure management frameworks supported by sustainable revenue prospects to provide fiscal sustenance impetus to enhance the growth process in developing countries.

scholarly journals Are treasury debt instruments still attractive to foreign investors? Poland – a case study based on ATM and ATR indicators

2020 ◽  
pp. 94-106
Author(s):  
Tomasz Uryszek ◽  
Agnieszka Kłysik-Uryszek
Keyword(s):  
Public Debt ◽  
Sovereign Debt ◽  
Research Method ◽  
Management Strategy ◽  
Debt Management ◽  
Policy Implications ◽  
Foreign Investors ◽  
The Public ◽  
Public Debt Management

The article’s primary goal is to investigate foreign investors’ activity on the Polish primary debt instruments market in light of the public debt management strategy. We wanted to check the scale of investors’ response to the authorities’ policy in the sovereign debt area. The article consists of five parts. We started with the introduction, followed by a literature review. We then described the research method and data, as well as the empirical discussion.We based our study mostly on the average time to maturity (ATM) and average time to refixing (ATR) indexes. The most important findings, concluding remarks, and policy implications are presented in the last part of the paper. The study’s general outcomes show that despite the deterioration of the State Treasury debt instruments’ overall characteristics targeted to foreign investors, Polish sovereign debt papers remained attractive to buy. It was mostly due to the still relatively low refinancing and interest rate risks for debt denominated in foreign currencies.

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