What puts low income countries in this category?

The debt situation of low-income countries has been back on the agenda ever since 2018, although many of these countries have benefited from earlier debt relief initiatives. The LICs did not succeed in using the debt capital they raised to generate investment momentum that would ultimately have led to convincing prosperity gains. During the current coronavirus crisis, a number of countries have already accepted debt relief and deferment offers, or are planning to do so. This will provide temporary respite for these countries but it will not solve the structural problems that are causing the debt problem.

This paper addresses selected structural aspects. One of these aspects is the inflow of FDI and the development of value chains. We will also examine the correlation between indebtedness and a specific governance aspect: statistical capacity.

What puts low income countries in this category?(PDF, 200 KB, non-accessible)