Guest essay by Eric Worrall
Another poor people will suffer because climate tear jerker which misses the obvious solution.
Developing countries face rising payments due to climate change, says report
July 2, 2018 by Laura Singleton, Imperial College London
Developing countries face debt payments of up to $168 billion over the next ten years as a result of their vulnerability to man-made climate change.
However, the researchers also found that investments in climate resilience can help improve fiscal health at the national level.
Dr. Charles Donovan, Director of the Centre for Climate Finance and Investment at Imperial College Business School, said: “Our work demonstrates that climate change is not only imposing economic and social costs on developing countries, but it is also amplifying existing risks that are already priced in fixed income markets. These impacts will grow.
“The good news is that investments in climate adaptation can not only reduce social, ecological and economic harm, but can buffer against fiscal impairments. But to be effective, these investments need to be made now.”
The full report is available here.
The report suggests countries with vulnerable infrastructure should improve their climate resilience, but in my opinion this would be a dreadful misallocation of resources. This would leave countries with already shaky finances struggling to pay off debts for events which might never happen.
A much better solution is to stop being poor. Most poor countries could dramatically improve their financial situation in just a few decades, by copying the 20th century Asian miracle. In the mid 20th century Asia proved to the world what keeps countries poor is their burden of political parasites – greedy kleptocrats stealing so much they suck their economies dry. Remove the worst kleptocrats, curb the greed of the political class just enough that ordinary people start to really believe in a better future, and even the poorest countries surge forward in acquiring wealth.
Rich people can afford all the seawalls and resilience infrastructure they need.
This is the message economists should be spreading – not the gospel of climate fear, keeping poor people in their place, forever indebted up to their eyeballs with no hope for a better future.