Target 8.D: Sustainability of the debt
I. Principles of action:
“Deal comprehensively with the debt problems of developing countries through national and international measures in order to make debt sustainable in the long term.”
In the context of debt relief, Samir Amin points out to the need of creating legal frameworks and respective bodies to decide upon conditions to be applied, while claiming for “the necessity for an audit that makes it possible to classify the debts” (as “immoral”, “illegal” or “acceptable”, for instance), and condemning the conceivers of MDGs for ignoring these needs in their approach.
We’ve just mentioned the progresses achieved concerning debt relief, which are relevant to the “credibility” of the countries to try to get new financing, especially since the access to these may be restrained due to the worldwide constriction of credit allocation. The current conjuncture is creating serious problems to several developing countries in managing to service their debts because these countries do not have the mechanisms to adequately fight the crisis effects, and this is why the actors of the international system are being urged to provide additional support to developing countries, such as temporary moratoria to the debt service, and mechanisms to manage situations of serious over-indebtedness or prevent those from occurring.