#To kill a mocking bird quick notes series#
Moreover, says McNair, "What weren't expecting were a series of once in a generation shocks." But McNair notes that the available financing from these sources "hasn't increased dramatically at all." So low- and middle-income countries also turned to newer lenders – including China.Ĭhina was a particularly attractive option, says McNair, because when it comes to making infrastructure projects happen, "it's incredibly quick and efficient." But, adds McNair, the terms that China sets when making loans for such projects "often are not up for negotiation" – putting the borrowing country into arrangements that can be problematically harsh down the line. They went to traditional lenders – governments and banks of wealthy countries like the U.S., and multilateral organizations like the World Bank. Let's borrow to fund this infrastructure.' " "So finance ministers did the logical thing and said, 'You know, here's cheap money. And the infrastructure needs are massive," says David McNair, head of global policy at the advocacy group the ONE Campaign.
"The population of Africa has doubled over two decades. This was really helpful for governments of many low- and middle-income countries. To understand the magnitude of this problem you need to go back to the early 2010s, when historically low interest rates made the cost of borrowing money very affordable. And it's driving up the cost of food to record levels. It's already forcing many of these nations to make excruciating choices between funding schools and hospitals – or avoiding defaults.
They're consequences of a major potential debt disaster looming over dozens of low- and middle-income countries.
Kenya suspended salary payments to thousands of government workers in March to avoid a default on its loans. Nigeria is now spending 96% of its government revenues to pay off the interest on its national debt.
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