Admiral-General Haffaz Aladeen. Fair Use, Political Satire

Boston University: Forgive Third World Debt to Advance Climate Goals

Essay by Eric Worrall

h/t neo; According to Boston University, banks need to forgive the national debts of nations run by corrupt despots, to advance climate and development goals.

Up to $520bln in debt write-offs needed for emerging nations’ climate goals

Story by By Libby George

LONDON (Reuters) – Up to $520 billion in debt needs to be written off to help developing nations at greatest risk of default return to a sounder fiscal footing and meet climate and development goals, according to a Boston University report released on Thursday.

The haircuts on debt owed to public and private creditors by 61 of the nations that are already in or are at most risk of debt distress are essential to avoid “cascading defaults,” according to calculations from the Boston University Global Development Policy Center and the Debt Relief for a Green and Inclusive Recovery (DRGR) Project.

“Without ambitious debt relief, many of the poorest countries don’t have a chance,” said Kevin P. Gallagher, DRGR project co-chair and director of the Boston University Global Development Policy Center.

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Those poor despots. Should we forgive their debts, so they can show they have learned by their mistakes, and they will absolutely promise not to spend the money on palaces, new luxury automobiles, mistresses, and funding Uranium enrichment facilities for peaceful purposes?

Here’s a radical alternative idea. Perhaps nations in debt distress should pay down their debts. That way they would have enough of their own cash, to spend on national development or climate action.

A good start might be to get rid of the corrupt despots who ran up the debts in the first place.

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April 8, 2023 6:05 am

What could go wrong?

Reply to  Scissor
April 8, 2023 8:33 am

Chinoase have it right: will not lend you money (we lend to the USA a lot) but we’ll build a road or railway and take lot of stuff away you have but don’t need.
In a little Balkan pocket size country they built 1bn euro highway leading to nowhere, as collateral they hold their only container seaport, that Russia wanted, but NATO beat them to it, not that they needed at all.
So Chinoase have hold of the most valuable this NATO member country’s property.
Government asked the EU to repay the Chinoase 1 bn euros cost but no success.
Not much wrong there; is it, or not?

Tom Halla
April 8, 2023 6:06 am

The WaBenzi have too many votes in the UN General Assembly.

Mark Whitney
April 8, 2023 6:19 am

Which is worse, tin-pot depots or Neo-liberal university administrators and faculty? But I repeat myself.

Reply to  Mark Whitney
April 8, 2023 10:48 am

What’s wrong with tin plated bus stations?

Dean S
Reply to  Mark Whitney
April 8, 2023 3:46 pm

Aren’t they one and the same?

Last edited 1 month ago by Dean S
Dodgy Geezer
April 8, 2023 6:25 am

I wonder if this is a clever idea in disguise? Isn’t the Chinese Belt and Road initiative designed to tie natural resources tightly to China through debt? And wouldn’t the Chinese suffer greatly if their hold was suddenly broken?

Reply to  Dodgy Geezer
April 8, 2023 7:43 am

That’s a debt they don’t intend to forgive.

Joe Crawford
Reply to  Dodgy Geezer
April 8, 2023 8:39 am

“Isn’t the Chinese Belt and Road initiative designed to tie natural resources tightly to China through debt?”

Correct. The developed countries that directly or indirectly hold third world debt should, as a minimum, require that the debtor countries offer their natural resources and potentially anything else of value as collateral. It’s high time we, in the developed countries, stop making unsecured loans to those ‘poor despots.’

Reply to  Dodgy Geezer
April 8, 2023 12:04 pm

Recently, Russia wrote off $20 billion of African debt

Tom Abbott
Reply to  wilpost
April 9, 2023 5:22 am

The total debt is 520 billion. The U.S. spends that much money on one spending bill.

Tom Abbott
Reply to  Dodgy Geezer
April 9, 2023 5:20 am

“And wouldn’t the Chinese suffer greatly if their hold was suddenly broken?”

The Despot won’t be paying down his debt with that extra money, he will just add a little more gold to his outfit. Maybe gold-plate his cars.

April 8, 2023 6:27 am

Insights from the AOC school of economics. we can just pay for it.

Paul S
Reply to  heme212
April 8, 2023 8:23 am

“A good start might be to get rid of the corrupt despots who ran up the debts in the first place.”

Like the idiots that has placed us 31 trillion dollars in debt?

Martin Brumby
Reply to  Paul S
April 8, 2023 8:59 pm

Those who pull the strings to get Sleepy Joe to move around must be wondering how to get this debt forgiveness idea to work for their own corrupt despot.

Tom Abbott
Reply to  Paul S
April 9, 2023 5:23 am

“Like the idiots that has placed us 31 trillion dollars in debt?”

Yeah, we need to get rid of them, too. They are the problem.

Joseph Zorzin
April 8, 2023 6:40 am

Nations loaning to other nations should carefully exam where the money is going- have auditors on the site- do due diligence, the way banks used to. So, perhaps some of the problem is irresponsible loaning.

April 8, 2023 6:56 am

>> Those poor despots.
You are a very ignorant person!
Try traveling a bit, most likely you do not have to go that far to find a person truely in need vwho has never been near a palace and just wonders what to eat tomorrow, have basic medical service or even clean drinking water!

However, you do have a point under your rubbish.

The last thing underdeveloped countries should do, is being forced to spend their money on something that might not benefit them at all.
(the question if underdeveloped countries should save energy is one of the few even Koonin did not look too good, their contribution to global warming is quite small and will be in the foreseeable future)

Gunga Din
Reply to  morfu03
April 8, 2023 7:32 am

You seem to be under the delusion that the despots would use the money to help the citizens rather than themselves.

Pat from Kerbob
Reply to  morfu03
April 8, 2023 8:03 am

Foreign aid buys a lot of rolls Royce’s

Joe Crawford
Reply to  morfu03
April 8, 2023 9:08 am

One should be very careful. Basing decisions on emotion rather than a thorough analysis of the situation rarely results in a successful outcome. As an oft quoted Chinese proverb goes: “Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime.”

Reply to  morfu03
April 8, 2023 10:52 am

Nobody is forcing them to do anything. They took out loans with a promise to repay.

April 8, 2023 7:08 am

Maybe we should talk this over with the Big Guy before developing new policies in regards to dictators, dictatorships and money laundering….

Ron Long
Reply to  spetzer86
April 8, 2023 8:12 am

Good advice, go to an expert for this type of advice, and Hunter is your guy (Brandon himself just wants to discuss ice cream flavors).

John the Econ
April 8, 2023 7:10 am

Perhaps Boston University could donate some of their $3-billion endowment to that end.

But they won’t. With Progressives, it’s always up to someone else to make the real sacrifices.

Gunga Din
April 8, 2023 7:23 am

“Boston University: Forgive Third World Debt to Advance Climate Goals”
This is the same school that gave AOC a degree in economics.

Reply to  Gunga Din
April 8, 2023 7:51 am

I’m not sure that “School” is the right term to use for places like Boston University. Kindergarten seems more appropriate.

Reply to  Disputin
April 8, 2023 10:54 am

A kindergarten is still a school of sorts.
Perhaps asylum is the word you are looking for?

Tom Abbott
Reply to  MarkW
April 9, 2023 5:29 am

Asylum/Leftwing Indoctrination Center.

April 8, 2023 7:24 am

Yes, so they can continue with their payments for Belt and Road Chinese infrastructure projects with timely payments.

michael hart
April 8, 2023 7:29 am

When he became UK Prime Minister after Tony Blair, Gordon Brown cobbled together an international agreement to do just this. Seems that it achieved nothing.

Corrupt dictators will always garner the resources of their nation and international donors and lenders. Some are much better than others, and should be the ones rewarded in order to set a good example for others.

April 8, 2023 7:34 am

In any loan there are two responsible parties, the borrower and the lender. If a loan fails to be repaid the onus falls as much or more on the lender as the borrower. Before a loan is made it is the obligation of the lender to determine if the transaction is likely to be successfully completed.

In the case of the type of loans mentioned here, neither the lender or borrower will be held personally responsible for the debt. Instead that debt is the obligation of others who had no part in securing the loan and received no benefits from it, yet are held responsible, perhaps for generations to come, for its repayment.

Imagine that upon reaching maturity your father informed you that the team of oxen his grandfather purchased a century ago had yet to be paid for and that your share of the price was to be taken from your future income. This is essentially the situation that “developing” countries face.(By the way, all countries are “developing” in one sense or another.) An individual in those debtor countries is right to be outraged that his future is held in bondage to decisions made by others. Perhaps that’s how faux democracy is supposed to work.

Gunga Din
April 8, 2023 7:37 am

Is there a list of the 61 nations?

Reply to  Gunga Din
April 8, 2023 10:19 am

Try a search dsalist.pdf

Plus the list of 40 Island nations….
That are going to drown…..
What always tomorrow!!!

From your friends at’:

April 8, 2023 7:42 am

It must be something in the water. They plan to change the world, at no cost to anybody but rich Western nations. That kind of stupid should hurt.

Tom Abbott
Reply to  max
April 9, 2023 5:33 am

It (CO2-Phobia) does hurt. It is hurting the Western nations. If continued, it will destroy the Western nations.

April 8, 2023 7:48 am

Boston U is out of touch and out of date considering Belt and Road objectives of the CCP.

Dave O.
April 8, 2023 7:56 am

Yes, we should forgive the USA’s debt, but what about the rest of the world.

April 8, 2023 7:59 am
Tom Abbott
Reply to  ResourceGuy
April 9, 2023 5:45 am

Yes, the harmful economic policies of Joe Biden/Radical Democrats has turned a thriving U.S. economy into a stumbling U.S. economy.

All the radical Democrats think about is spending money. They don’t even consider the consequences. And when the bad consequences happen, like now, they blame everything on Republicans and Racism. Standard Operating Procedure in our modern politics.

Going by economic outcomes alone, no sane person would ever vote for another radical Democrat. But it appears there are a lot of delusional people who vote, too. Maybe too many for us to save ourselves from the radical Democrats/Communists?

If we fall, Leftwing Propaganda will be our downfall. And a lack of critical thinking on the part of millions.

Time will tell.

Pat from Kerbob
April 8, 2023 8:01 am

Just another name for climate reparations for nonexistent damages

April 8, 2023 8:02 am

Isn’t Boston University where AOC received her economics education? Amazing the education $82,760 tuition a year will buy you these days. ‘Nuff said.

Reply to  rbcherba
April 8, 2023 8:40 am

I heard her complaining about her own student loan debt. Despite her congressional salary and money under the table, she wants me to pay off her student loan debt.

Reply to  pflashgordon
April 8, 2023 10:26 am

But it is so bad when your Apartment at the Ritzy New Navy Yard Apartments building in Wash DC runs upwards of $4,000 a month on a $172,000 Congressional Salary.!.

Her New York City Apartment was Inherited from her Dad…..just New York City taxes to be paid.

April 8, 2023 8:05 am

Charity begins at home – unless you’re a globalist

April 8, 2023 8:36 am

According to Boston University’s plan, to accelerate climate action the U.S. should forgive its own debt, which far exceeds the measly amounts mentioned here. Problem solved (/sarc).

Ed Zuiderwijk
April 8, 2023 9:11 am

Climate justice: a scheme to transfer money from poor people in rich countries to rich people in poor countries.

Martin Brumby
Reply to  Ed Zuiderwijk
April 8, 2023 9:14 pm

And interesting that it was decided by the UN to start banging this “climate justice” drum not so long after 9/11.

Almost as if they hoped that the more excitable denizens of failing third world states ruled by corrupt despots, might exercise their discontent on the Western Democracies, rather than their very own despots.

Peta of Newark
April 8, 2023 9:17 am

and how many times has this idea been floated. just. how. many. times.

Has nobody got an original idea, a practical bone or any other remedy apart from money money money

The very real problem with money is that it drives extinctions and complete destructions.

For any other critter using/consuming any other resource on this Earth, if that resource goes into scarcity, it loses value to the critter.
The critter then ‘leaves it alone’ and goes after a replacement.
The original resource can then ‘recover’ and return to abundance.

But when money is involved, should a resource go into scarcity, its value goes up = it becomes worth more money and so is chased/eaten/burned/dug-up with even greater fervour than previously.
Until it totally all consumed and completely crashes beyond a (haha tipping) point, beyond which it cannot recover
e.g. Dodo, Passenger pigeon, Buffalo, Woolly Mammoth, Rainforest, (damn near) Blue Whale. Not forgetting: Golden Goose

It is that Money got us into this mess yet the only solution anyone has is: more money.
It simply can not end well by following/continuing this trajectory

Bill S
April 8, 2023 9:30 am

The intentional ignorance of the left never ceases to amaze. “Forgive debt” is used as if forgiven debt just disappears, whether it is debt to Third World countries or student loans.

Debt never just disappears. “Forgiven” debt just shifts the burden to some other party, ie US taxpayers. Those to whom the debt is shifted never had a say in the loans when they were originated, yet are somehow expected to take on the responsibility for repayment.

Last edited 1 month ago by Bill S
Bill Powers
April 8, 2023 9:40 am

Point 1 – This would create a real banking collapse and make the great depression look, not only not great, but more like a sunday picnic complete with bouncy castles and kids rides.

Point 2 – Who authorized the loans in the first place i.e. which legislators yea voted and what president signed it

Point 3 – how about we hold these legislators and other politicians and bureaucrats accountable as co-signers. They get rich in their positions and then get massively wealthy doing speaking engagements and putting their name on books written by other people. They can afford to cover these loans with Soros help. Taxpayers didn’t authorize them to spend our tax dollars on these 3rd world despots. If we held the poli/bureaucrats responsible for the interest on these loans they would stop spending our tax dollars so frivolously.

Point 4 – I believe the first step in taking back education in the country is to terminate all federal funding to universities. Let us review this issue with Boston College when Federal Grants and Student tuition money goes away.

Point 5- Finally we can take a closer look at federal funds to public K-12 schools. We learned reading, writing and arithmetic effectively without computers in the 20th century but today johnny can’t read and thinks he’s a girl. Our public schools in our urban centers (were most of the kids reside) are massively funded abject failures! Why would we throw good money after bad. their failure is not a lack of funding and there are millions of private school teachers that would love to receive public school pay and benefits. This is a flim flam of monolithic proportions.

Last edited 1 month ago by Bill Powers
April 8, 2023 10:46 am

The loans given to them in order to pay for climate change projects were squandered and/or siphoned off to the bank accounts of those who run those countries and resulted in no progress.
Therefore we need to forgive those loans so that the countries will have the money needed for climate change projects.

Yes, socialists actually do think that way.

April 8, 2023 11:05 am

Here’s a radical alternative idea. Perhaps nations in debt distress should pay down their debts.

There are plenty of Chinese, and soon Russian, “Bankers” just waiting for such a decision.

April 8, 2023 12:46 pm

An even better start to reducing the world’s problems would be getting rid of Boston College after its idiotic research piece on global warming increasing the rate of home runs.

April 8, 2023 1:55 pm

Is there no end to the madness and illogicality of academics?

Tom Abbott
Reply to  mikelowe2013
April 9, 2023 5:57 am

I don’t think there is an end when it comes to CO2. Their unwarranted fear of CO2 has caused them to think and act irrationally.

April 8, 2023 2:32 pm

No the answer is to build wind and solar farms, they save so much money these poor nations could pay off their debt and rebuild their countries.

April 8, 2023 2:55 pm

Not surprising, yet another “solution” that involves spending our money.

Tom Abbott
Reply to  ScienceABC123
April 9, 2023 5:58 am

Spending money is the only “solution” the Left knows.

April 8, 2023 6:41 pm

When I started working in the 1960s, we spoke with reverence about people so successful that they were temed “millionaires”.
Now, a mere 60 years later, the term is “billionaires”.
There is a factor of 1,000 between these. Has the inherent value of money increased 1,000 times? No. Has your income or mine increased 1,000 times? No. Has the cost of a car increased 1,000 times? No.
What has changed, to convert millionaires to billionaires? To convert expressions of national debt from millions to billions?
Is it because modern accountants cannot add up as well as before?
Is it from the way computers express big numbers, like with exponents? Is it because there is no term for “10-millionaires” or 100-millionaires, so that the mind jumpos from the verbal million to billion in one easy hop?
Is it because there has been a change in the distribution curve that shows wealth, from a broad peak to a narrow one, the Kurtosis effect?
Is it because there has been a change in how ruthless the wealthy have become in order to increase wealth beyond ordinary imagination?
Does anyone see this as a question needing an answer for global social good?
Is it part of a remedy for excessive national debts?

Geoff S

April 8, 2023 7:05 pm

Why give the despots a break on their loans?

They will end up in the UN anyway !

Edward Katz
April 9, 2023 6:12 pm

That’s right: forgive debt so that the corrupt, dysfunctional 3rd World governments can blow and/or steal foreign aid on luxury goods or their militaries to help them stay in power. Whether this helps the climate change fight is immaterial.

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