Unsustainable sovereign-debt levels in the developing world threaten to erase several decades of hard-fought progress on development agendas. According to the International Monetary Fund (IMF), an estimated 50 percent of developing countries are in active debt distress or at high risk of debt distress. The costs of debt service now exceed outlays on education and health in several countries. The COVID-19 pandemic and Russia-Ukraine war are the latest in a series of shocks that have contributed to the recent buildup of debt since developing countries benefited from debt forgiveness under the Heavily Indebted Poor Countries (HIPC) and Multilateral Debt Relief Initiative (MDRI). The world’s deteriorated fiscal situation and unsustainable-debt outlook were top of mind as heads of state and finance leaders gathered in June 2023 in Paris for the Summit for a New Global Financing Pact to rethink the global financial system […]