Root Causes of Debt

In spite of several debt reduction initiatives that took place in the last two decades, a crippling debt overhang continues to hamper the development opportunities of millions of people throughout the world. RBW promotes a long-lasting, comprehensive and systemic solution to the debt problem.

Central to this solution RBW promotes an international rules-based binding framework for systematically dealing with sovereign debt in a fair way. It also advocates analysis that helps build trade and investment dynamics that lead to indebtedness into the design of debt reduction measures and vice versa (build debt effects of trade and investment policies into the management of these policies at domestic and international levels). Private and domestic debt are increasingly becoming central to the debt issues facing developing countries. Consequently, RBW studies the dynamics of development in the light of indebtedness through domestic and international financial markets.