"Heads of state from the world's most powerful countries gathered in Johannesburg, South Africa, over the weekend for a summit that had been billed, under South Africa's G20 presidency, as a turning point for addressing debt distress across the Global South. South African President Cyril Ramaphosa had consistently framed the issue as central to his agenda, arguing that spiralling repayment costs have left governments, particularly in Africa, with little room to fund essential services like healthcare and education."
"But despite repeated pledges including in the leaders' summit declaration to strengthen the implementation of the G20 Common Framework South Africa did not deliver any new proposals for easing fiscal constraints in indebted nations. Hopes that world leaders would use the G20 summit to tackle sovereign debt distress were further dashed when United States President Donald Trump, at odds with South Africa over domestic policies, skipped the meeting altogether amid Washington's retreat from multilateralism."
"The G20 which consists of 19 advanced and emerging economies, the European Union and the African Union represents 85 percent of global gross domestic product (GDP) and roughly two-thirds of the world's population. In October, G20 finance ministers and central bank chiefs met in Washington and agreed to a consensus statement on debt. We recognise that a high level of debt is one of the obstacles to inclusive growth in many developing economies, which limits their ability to invest in infrastructure"
Total debt in developing countries has reached a record high, creating frustration that repayment frameworks dominated by Western governments exert undue influence. South Africa prioritized sovereign debt at the G20 summit in Johannesburg, arguing that rising repayment costs limit governments' ability to fund healthcare, education and other services. Despite pledges and a leaders' declaration to strengthen the G20 Common Framework, no new proposals for easing fiscal constraints were produced. The absence of the United States president and Washington's retreat from multilateralism weakened prospects for decisive action. G20 finance ministers recognised high debt as an obstacle to inclusive growth.
Read at www.aljazeera.com
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