Publication Inclusive Economy "Making the Global Financial System More Resilient: A Regional / Group-wise Approach to Sovereign Debt Workouts" Making the global financial system more resilient Kaiser, Jürgen This publication proposes limited debt relief schemes to overcome weaknesses of debt restructuring mechanisms and thus preventing a new debt and financial crisis. Author: Jürgen Kaiser More countries in the Global South may be heading toward a new debt crisis as the result of a new wave of debt financing due to low global interest rates coinciding with low commodity prices. Thus far, innovative approaches to a debt workout with regard to the new crisis have been in short supply. To rise to the next challenge, there is much to learn from the HIPC/MDRI initiatives of the 1990s and 2000s, namely, that it may be possible to overcome political deadlocks by designing debt relief exclusively for a limited group of countries. Such limited debt relief schemes could then prompt procedural innovation, such as comprehensiveness and impartiality, which would remedy weaknesses of the HIPC/MDRI schemes and debt restructuring mechanisms at large. FES New York is pleased to share this proposal in a new FES International Policy Analysis publication by Erlassjahr’s Jürgen Kaiser.
