Can We Exit from a World of Debt?

In the past two decades, the external debt of developing countries has quadrupled to $11.4 trillion (2023). It is important to understand that this money owed to foreign creditors is equivalent to 99% of the export earnings of the developing countries. This means that almost every dollar earned by the export of goods and services is a dollar owed to a foreign bank or bond holder. Countries of the Global South, therefore, are merely selling their goods and services to pay off debts incurred for development projects, collapsed commodity prices, public deficits, the COVID-19 pandemic, and the inflation due to the Ukraine war. Half the world’s population (3.3 billion) lives in countries that allocate more of their budget to pay off the interest on debt than to pay for either education or health services. On the African continent, of the fifty-four countries, thirty-four spend more on debt servicing than on public healthcare. Debt looms over the Global South like a vulture, ready to pick at the carcass of our societies.