The Great Debt cleanup
Friday, June 26, 2020
BOSTON: With more than $7.5 trillion owed to external creditors, emerging economies’ debt-service costs are becoming increasingly onerous just when they need as much fiscal space as possible to confront the COVID-19 crisis. While there is a strong case for cancelling much of this debt, many key players oppose doing so, arguing that it would limit these countries’ access to international markets in the future, thereby reducing investment and growth.
In fact, the evidence for this view is fairly weak. Far from reliably boosting investment and growth, international financial flows are more likely to contribute to volatility in emerging markets and developing economies. Even so, it has long been assumed in academia and policy circles that international finance helps emerging economies build more effective institutions, enabling them to develop their banking system and stock markets, for example. Opponents of debt forgiveness have also argued that emerging markets need the “discipline” that international bond markets provide, because the threat of capital flight constrains misrule by autocrats and populists.
The recent Vaccination Day in Motokwe, orchestrated through collaborative efforts between UNICEF, USAID, BRCS, and the Ministry of Health, underscores a commendable stride towards fortifying child health services.The painful reality as reflected by the Ministry of Health's data regarding the decline in routine immunisation coverage since the onset of the pandemic, is a cause for concern.It underscores the urgent need to address the...