Nobel Prize-winning economist Joseph Stiglitz and former Argentina Economy Minister Martin Guzman authored a study to improve how the IMF and World Bank analyze debt problems. The paper is part of “Debt Sustainability Assessments and their Role in the Global Financial Architecture,” a four-part series to appear as chapters in a book this fall. The papers are commissioned by the religious development group Jubilee USA Network and German foundation Friedrich-Ebert-Stiftung. The studies were presented to IMF and World Bank executive directors on September 5th, 2024.

The IMF and World Bank conduct debt sustainability analyses that guide prevention and solutions for debt crises. The experts assert that recent debt restructurings like those in Zambia, Sri Lanka and Ghana, faced delays because of differences among private creditors and the IMF and World Bank debt analysis.

“Too often debt sustainability analysis doesn't provide the full picture to deal with the economic challenges that most countries face,” said Eric LeCompte, Executive Director of Jubilee USA Network. “These technical debt assessments impact all of us. The devil is in the details and current debt analysis underestimates debt crises, leads to failed recoveries or inflicts harm on the people of a country already in crisis."

The series of papers are written by experts familiar with debt sustainability. In addition to the paper from Stigltz and Guzman, other paper authors include Sherillyn Raga, Matthew Martin and Gail Hurley. These authors focused on economic shocks such as pandemics and weather events, the sustainable development and climate goals and accountability to affected populations.

“If debt analysis includes preparing for economic shocks, addressing climate changes and how people are fully impacted, we can better prevent and solve crises,” added LeCompte who serves on United Nations finance expert groups.

The IMF initiated a review of its methodology to assess debt in low-income countries. Pope Francis declared 2025 is a Jubilee year, calling for the forgiveness of unpayable debts and an international process to deal with debt crises.

Read the Debt Sustainability Assessments and their Role in the Global Financial Architecture paper series here.

Jubilee USA Network is an alliance of more than 75 US organizations and 750 faith communities working with 50 Jubilee global partners. Jubilee USA builds an economy that serves, protects and promotes the participation of the most vulnerable. Jubilee USA wins critical global financial reforms and won more than 0 billion in debt relief to benefit the world's poorest people.

www.jubileeusa.org