In her address to the IIEA, for the eighth lecture of the 2022 Development Matters series, supported by Irish Aid, Professor Carmen Reinhart discusses debt in developing nations. External debt is one of the key challenges for developing nations in achieving the 2030 UN Sustainable Development Goals. The convergence of three crises, the COVID-19 pandemic, conflict, and increased climate related disasters have jeopardised economic growth and progress in developing nations. Professor Reinhart offers insight into the current debt situation in developing nations and explores the challenges of financing this debt. Professor Reinhart examines debt levels which grew exponentially during the pandemic, the lack of transparency of the terms of debt restructuring, and the implications of exposure to foreign debt liability.

About the Speaker:

Carmen Reinhart is the Minos A. Zombanakis Professor of the International Financial System at Harvard Kennedy School. From 2020-2022 she served as Senior Vice President and Chief Economist at The World Bank Group. Her work has helped to inform the understanding of financial crises in both advanced economies and emerging markets. Her best-selling book (with Kenneth S. Rogoff) entitled This Time is Different: Eight Centuries of Financial Folly documents the striking similarities of the recurring booms and busts that have characterised financial history. She is an elected member of the Group of Thirty and is a senior fellow at the Council on Foreign Relations. Professor Reinhart is ranked among the top economists worldwide according to Research Papers in Economics (RePec).