Promoting a pandemic recovery: evidence to support managing the growing debt crisis

 

As economic, public finance and debt crises continue in lower-income economies, investing in health-related pandemic responses and economic recovery is increasingly challenging. In addition, integrating the Sustainable Development Goals (SDGs) and climate action into these efforts is as challenging as it is essential. The international community is responding to the global debt crisis, as it is to the pandemic. But there are concerns that debt-management efforts will take too long. Further, there is growing civil society engagement, and potential polarization, around growing public debt, including in contexts of perceived corruption.

To respond to these challenges, there is an urgent need for cost-effective policies and analysis of how SDG and climate considerations can be integrated into debt management, while enhancing citizens’ engagement and accountability. To support this, the project will promote high-quality locally owned evidence on, and accountability for, policies for a sustainable inclusive recovery in the context of high and growing public debt. IDRC will support local institutions in six countries with high debt burdens: Bolivia, Ethiopia, Honduras, Nigeria, Paraguay and Uganda. Each country case study will consider macro-economic policies, the complexities faced by debtors with China and private-sector actors, and effective civil society engagement.

The project will be implemented by a consortium for cross-country learning and knowledge sharing.