Boston University: Forgive Third World Debt to Advance Climate Goals

From Watts Up With That?

Essay by Eric Worrall

h/t neo; According to Boston University, banks need to forgive the national debts of nations run by corrupt despots, to advance climate and development goals.

Up to $520bln in debt write-offs needed for emerging nations’ climate goals

Story by By Libby George

LONDON (Reuters) – Up to $520 billion in debt needs to be written off to help developing nations at greatest risk of default return to a sounder fiscal footing and meet climate and development goals, according to a Boston University report released on Thursday.

The haircuts on debt owed to public and private creditors by 61 of the nations that are already in or are at most risk of debt distress are essential to avoid “cascading defaults,” according to calculations from the Boston University Global Development Policy Center and the Debt Relief for a Green and Inclusive Recovery (DRGR) Project.

“Without ambitious debt relief, many of the poorest countries don’t have a chance,” said Kevin P. Gallagher, DRGR project co-chair and director of the Boston University Global Development Policy Center.

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Those poor despots. Should we forgive their debts, so they can show they have learned by their mistakes, and they will absolutely promise not to spend the money on palaces, new luxury automobiles, mistresses, and funding Uranium enrichment facilities for peaceful purposes?

Here’s a radical alternative idea. Perhaps nations in debt distress should pay down their debts. That way they would have enough of their own cash, to spend on national development or climate action.

A good start might be to get rid of the corrupt despots who ran up the debts in the first place.