A shocking $50 billion (£39 billion) has been paid to G20 creditors by debt-ridden countries that are also extremely vulnerable to the climate problem since the start of the COVID-19 epidemic, according to a new study.

The International Institute for Environment and Development (IIED) performed the analysis to shed light on the financial burden placed on the world's poorest and most climate-vulnerable countries as they struggle to pay back debts owed to the 20 richest countries in the world.

The analysis, which is based on the most recent World Bank statistics, was released in advance of the G20 finance ministers and governors of central banks meeting in Gandhinagar, India.

 

The analysis shows that the contributions paid by 58 LDCs and SIDS totaled $21 billion (£16 billion) in 2022, up from $14 billion (£11 billion) in 2021 and $13 billion (£10.3 billion) in 2020.

The world's poorest nations, which also run the greatest risk from escalating climatic calamities, are caught in a never-ending cycle of financial hardship due to the mounting debt obligations.

 

-- © Copyright Asean Now 2023-07-10

"...they struggle to pay back debts owed to the 20 richest countries in the world."

Well, the poor countries would have a difficult time borrowing from other poor countries, ya think?

Paying off one's debts used to be considered expected behavior, but it seems that has gone by the by

In defense of poor countries, I wonder how much of that debt went to paying off whatever general was in charge at the time for some wasteful white elephant project that made the rich richer but did little to improve average person's life

"Small is beautiful" just doesn't deliver on the bribes like building a new dam

3 hours ago, Emdog said:

"...they struggle to pay back debts owed to the 20 richest countries in the world."

Well, the poor countries would have a difficult time borrowing from other poor countries, ya think?

Paying off one's debts used to be considered expected behavior, but it seems that has gone by the by

In defense of poor countries, I wonder how much of that debt went to paying off whatever general was in charge at the time for some wasteful white elephant project that made the rich richer but did little to improve average person's life

"Small is beautiful" just doesn't deliver on the bribes like building a new dam

It’s not quite as simple as that.

 

Wealthy nations have run ‘development programs’ that were designed to create an income stream of debt.

Also not all debts were legally run up. An example being debts owed by Iraq run up by Saddam Hussain’s regime on importing goods and materials in contradiction of sanctions.

 

These debts are still being paid to the suppliers/nations (in particular France and Germany) despite the export of those goods and materials to Iraq having been in contravention of embargo.