The Global Debt Crisis and Inequality

The world is burdened with enormous debt, which is three and a half times the size of the global economy. This debt is distributed unequally, with impoverished countries in the global South trapped under unpayable debt. Meanwhile, wealthy countries in the North and West use this debt to impose political demands on indebted countries. The debt burden is particularly severe for developing countries in Africa, Asia, and Latin America. Many countries are borrowing from private creditors on international capital markets, leading to higher interest rates and shorter maturities. This mounting debt crisis poses a serious threat to the global economy and highlights the inequality embedded in the international financial architecture.