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The vicious cycle of debt in the Global South
This article is published following the World Bank publication regarding rising debt in the Global South. A debt crisis threatens heavily indebted poor countries such as Sudan, Afghanistan and Haiti, already weakened by rising poverty, slower economic recovery than in industrialized economies and a shortage of vaccines, which makes them vulnerable to the spread of Covid-19. The pandemic and the war in Ukraine have increased their budget deficits. More than half of poor states are now over-indebted or at risk of being over-indebted, up from 30 percent in 2015. In this context, it is interesting to come back to the…