Over the past several months, economists and others have argued that the money that poorer countries owe to richer ones is contributing to the climate crisis. The smaller and less wealthy a country is, the more vulnerable they are to the consequences of climate change. Coping with that volatility can make it challenging for countries to pay down debt they may owe to wealthier countries, private investors and international institutions like the International Monetary Fund or the World Bank. The volatility of the value of debt and debt-service payments make it much harder for developing countries to invest in things that might blunt the impact of climate change and prevent future disasters.
By Jillian Berman. MarketWatch, MSN. August 13, 2021.
