New debt crises threaten global stability
By Martin Khor
Global debt has jumped alarmingly to US$152 trillion and as capital flows out from developing countries, some facing new debt crises. Debt worldwide has grown to unprecedentedly high levels and has to be brought down to prevent another financial crisis. This was highlighted by the International Monetary Fund at its annual meeting in Washington earlier this month.
Battle Hots Up to Curb ‘Vulture Funds’
By Martin Khor
Many countries are facing a worsening debt situation, and thus feel the urgency to curb ‘vulture funds’ and to set up a global debt restructuring mechanism. External debt is rearing its ugly head again. With the global economic slowdown, lower commodity prices and less tourism, many developing countries are facing reduced export earnings and foreign reserves. No country would like to have to seek the help of the International Monetary Fund to avoid default. That could lead to years of austerity, high unemployment, cuts in social development and at the end of it, still no light at the end of the tunnel. (more…)
