Debt Sustainability and Macroeconomic Issues in Infrastructure
Interesting recent seminar from AIIB Annual Meetings, in Luxembourg;
This seminar aims to explore the fundamental question of how developing countries can increase investment in the infrastructure their economies need, while at the same time navigating uncertainties in the global economy and avoiding the accumulation of unserviceable, unsustainable debt that will drain their economies rather than boost them.
Discussion Topics
Do developing economies today have sufficiently good macroeconomic frameworks and policy buffers to support increase in infrastructure investments?
Are debt and debt levels in developing economies well managed? Have the learning points from past crises been sufficiently incorporated into policies?
What are the further risks to debt sustainability and how should countries respond? Are there hidden vulnerabilities?
What further improvements can international organizations and countries make in terms of debt sustainability analysis?
In today’s context, should countries scale back infrastructure investments in midst of economic downturn and uncertainties, or can such investment act as a counter-cyclical measure?
Related:
Livestreaming — Discussion Panels at AIIB Annual Meeting
China-led AIIB to begin lending in baht, rupiah and rupee;
A new study tracks the surge in Chinese loans to poor countries
