Article shared by Tom McDermott
Click here for the summary in DEVEX
"....the global south paid out tens of billions more in debt repayments than they received in new lending and official development assistance, according to new research from anti-poverty organization ONE Campaign. And this year looks likely to be the same."
The figures, unveiled ahead of the World Bank-International Monetary Fund Spring Meetings, dissect net financial flows to nations in the global south and draw on data from the World Bank and the Organisation for Economic Co-operation and Development.
In 2022, a year marked by economic upheaval, net financial transfers to lower-income countries fell to their lowest since the global financial crisis. From a high of $225 billion in 2014, net inflows dwindled to $51 billion, writes Devex Business Editor David Ainsworth.
Further analysis based on World Bank projections found the numbers are expected to dip further. In 2023, instead of money flowing into global south nations, a net $21.4 billion is projected to have flowed out. And $50.5 billion more is expected to depart this year.
That’s because aid from wealthier donors has not grown with need and donor countries spend more assisting refugees domestically, keeping aid money within their own borders. COVID-19 and conflict-driven inflation has also pushed up interest rates, driving up borrowing costs for countries in the global south and weakening their exchange rate with the U.S. dollar."
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