Simeon Djankov, Ugo Panizza, 22 June 2020

At the beginning of the COVID-19 pandemic, it was hoped that warm weather and younger populations would shield many developing countries from the virus. This hope has not been in realised. Infected cases in Africa, South Asia and Latin America are still growing, with Latin America having surpassed the number of cases in Europe and growing rapidly. This column introduces a new eBook that describes the early work focusing on developing and emerging markets. It concludes that the international community should step up, by providing aid, technical assistance and debt relief so that countries will not need to decide between saving lives and servicing their debts.

Dani Rodrik, 28 January 2009

The global crisis is an opportunity for developing nations to project their interests in multilateral institutions, and gain influence in shaping economic globalisation. To make the best of this outcome, developing nations need a good sense of their interests and priorities, but also to recognize that having a greater say entails acceptance of greater responsibilities.

Bernardo Guimaraes, 08 October 2007

Emerging nation debts are desirable for moving capital from richer to poorer countries, where it is relatively scarce. However, debt crises in emerging nations have negative effects on the global financial system. New research suggests that if emerging economies’ debt payments were negatively related to the world real interest rates prevailing on the maturity of their debt contracts, the risk of default and its volatility would be significantly reduced. A switch to such debt contracts would decrease the incidence of sovereign debt crises.

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