Patricia Kisare writes about the need for an international debt court in the latest Third Way Cafe.
The World Bank and the International Monetary Fund (IMF) are two of the largest sources of sovereign loans for low-income countries. While most of these loans are for poverty alleviation, the debt burdens they have created are themselves creating cycles of poverty.
High interest rates have made it more expensive for countries to service these loans, forcing governments to spend more on debt services than on social services for their citizens. As a result, many low-income countries continue to struggle with paying off their sovereign debts.
Read the entire article here.