Before Covid-19 most discussions on development finance were focused on using public money and institutions to ‘leverage’ private finance. The pandemic has, however, exposed the consequences of decades of austerity policies and privatisation strategies.

The rules on how debt relief should be counted as Official Development Assistance are currently being negotiated by the Organisation for Economic Co-operation and Development (OECD) Development Assistance Committee (DAC) – under the auspices of its Chair Susanna Moorehead – and the Paris Club, which is an informal group of creditor governments. 

The world is facing an unprecedented crisis. As Covid-19 spreads across the globe it threatens to disproportionately hit developing countries.

Argentina continues to struggle with recession and a mounting debt crisis. The country has been on selective default for a few months, and is battling to avoid a broader default.

On 16 April 2020, the Organisation for Economic Co-operation and Development (OECD) released the preliminary statistics on Official Development Assistance (ODA) for 2019.

“Climate disruption is approaching a point of no return [...] We must act decisively to protect our planet from both the coronavirus and the existential threat of climate disruption.”

BBC News 

This second part of our two-part blog series provides an assessment of the G20 Debt Service Suspension Initiative announced last week. Part I analyses the impact of the proposal on fiscal responses to Covid-19. Part II places the initiative in the context of the broader economic costs of the crisis for developing countries.

This blog series of two parts will provide an assessment of the G20 debt service suspension initiative announced last week. Part I analyses the impact of the proposal on fiscal responses to Covid-19. Part II places the initiative in the context of the broader economic costs of the crisis for developing countries. 

As the world grapples with responding to the Covid-19 pandemic, this blog explores the key issues for countries in the global south.