IMF, World Bank Warn Rising Debt in Poor Countries Could Unleash Crises

Debt buildup in poor countries is a central discussion topic (AP) at this week’s Spring Meetings of the International Monetary Fund (IMF) and World Bank in Washington, World Bank President David Malpass said. He called for action to prevent debt crises in poor countries as the war in Ukraine disrupts food shipments and exacerbates inflation.

Sixty percent of low-income countries are suffering or close to suffering debt distress, IMF Managing Director Kristalina Georgieva said. The IMF predicts consumer prices will rise 8.7 percent in emerging-market countries and 5.7 percent in advanced economies this year, the most since 1984. Bloomberg calculated that countries including El Salvador, Ethiopia, Pakistan, Sri Lanka, and Tunisia are particularly at risk of default.

Analysis

“Supply chain issues and pandemic-era bottlenecks in global transport and production networks predated the war in Ukraine. The unprecedented use of sanctions in these already troubled conditions has made an already difficult situation worse,” Cornell University’s Nicholas Mulder writes for Foreign Affairs.

“One sign of trouble ahead is the lengthening line of countries in rescue talks with the IMF. Along with Sri Lanka, it includes countries with similar balance-of-payments problems like Egypt and Tunisia, where food prices helped drive regime change just a decade ago,” Bloomberg’s Shawn Donnan, Eric Martin, Andrew Rosati, and Jihen Laghmari write.

Europe

Putin Claims Victory in Mariupol, Says Troops Will Not Storm Factory Holdout

Russian President Vladimir Putin ordered troops not to invade a Mariupol steel plant where Ukrainian fighters are sheltering, telling the forces to instead blockade them (BBC). A Ukrainian official said Russia now controls (Al Jazeera) 80 percent of Luhansk, one of two regions in Ukraine’s eastern Donbas.

CFR provides comprehensive coverage of the war in Ukraine.

Russia/Ukraine: UN Secretary-General Antonio Guterres requested meetings (UN News) with the presidents of both countries to press them for a peace agreement and support for humanitarian access in Ukraine.

CFR’s Stewart M. Patrick calls the war in Ukraine the United Nations’ biggest test in three decades.

Pacific Rim

Japan, New Zealand to Boost Cooperation on Clean Energy

During a visit to Japan, New Zealand Prime Minister Jacinda Ardern said the countries will step up cooperation (Nikkei) on geothermal and hydrogen energy in particular.

China: Health experts are questioning how China counts COVID-19 deaths as official reports state that only seventeen people in Shanghai have died of the disease despite the city recording more than four hundred thousand infections, the New York Times reported.

South and Central Asia

UK’s Johnson Visits India

British Prime Minister Boris Johnson is expected to lay the groundwork (Indian Express) for a new trade agreement between India and the United Kingdom (UK) and encourage Indian officials (Al Jazeera) to reduce reliance on Russia.

For Foreign Affairs, CFR’s Manjari Chatterjee Miller writes that the Ukraine crisis should force India to rethink its Russia policy.

Afghanistan: Explosions in the capital, Kabul, and the cities of Mazar-e-Sharif and Kunduz killed at least ten people (AP) and wounded dozens more. No one has claimed responsibility.

Middle East and North Africa

Jordan Hosts Emergency Meeting as Jerusalem Tensions Continue

Jordan is convening the regional meeting (Times of Israel) after Palestinian militants launched two rockets (AP) toward Israel from the Gaza Strip. Israeli aircraft reportedly struck militant targets in response.

Egypt: Cairo announced that the Suez Canal Economic Zone signed a $3 billion deal (Reuters) to produce green energy for fueling ships.

Sub-Saharan Africa

Denmark, Rwanda Discuss Asylum Deal

The potential deal would transfer asylum seekers (Reuters) from Denmark to Rwanda in an arrangement similar to one announced between Rwanda and the UK last week.

Ethiopia: Regional officials concluded that more than 1,900 children under the age of five died of malnutrition in the Tigray region in the past year, according to a report seen by the Associated Press.

Americas

International Court Rules on Colombia-Nicaragua Maritime Dispute

The International Court of Justice ruled (Al Jazeera) that Colombia must cease patrolling and efforts to control fishing in waters previously disputed by the two countries.

Nicaragua: The government ordered that twenty-five nongovernmental organizations must close (Confidencial). The move is the latest in what critics have called a crackdown on civil society and political opposition.

Council on Foreign Relations

58 East 68th Street — New York, NY 10065

1777 F Street, NW — Washington, DC 20006

Shop the CFR Store

Forward This Email

Manage Your Email Preferences