Fixing the Broken System: Tackling the Enormous Debt Problem

Prominent economists and world leaders argue that the current framework established after World War II to safeguard economic growth and stability, with the International Monetary Fund (IMF) and World Bank as its pillars, is failing in its mission. The global financial architecture is outdated and dysfunctional, contributing to an inequitable and unstable global economy. The size and complexity of debt crises have increased, involving China and private creditors, and resolving them has become more challenging. The mismatch between the institution and its mission has become more apparent as new geopolitical conflicts and climate change pose imminent threats. Critics argue that the fixes implemented so far are insufficient, and there is a need for significant reforms to align policies with the current economic landscape.