Another Debt Crisis in the Global South? Economist Reveals the Key to Understanding It
Over half of all developing countries in the world are either currently in, or headed toward debt distress.
People are waking up to discover that another international debt crisis of enormous proportions looms on the horizon of a scale not seen since the early 1980s, after which Latin America and Africa slogged through a “lost decade.” Implosions of this magnitude can wipe out years of progress in health, education, and social stability. Yet not many people understand why and how this is happening.
As a new crisis gains momentum, economist Martin Guzman, former Minister of the Economy of Argentina and co-president of Columbia University’s Initiative for Policy Dialogue offers his perspective on what has gone wrong and what can be done to address it. In his view, you can’t understand debt crises without confronting the power dynamics at play.