![]() Even fewer supply figures on the potential vulnerability of the country’s debt position, while just one-quarter contribute information on the long-term sustainability of government finances. According to the Open Budget Survey, about half of the 120 countries surveyed provide data in their budget proposals on their total debt burden. Little attention has been given to the role information could play in mobilizing domestic actors in holding governments accountable long-term.Ĭountry officials provide little information about debt as part of regular budgetary processes. ![]() In some cases, personal benefit provides a strong incentive for politicians to accept offers that they may otherwise refuse, especially when negotiations are opaque.Ĭalls for “debt transparency” by international financial institutions are important but have tended to be donor-driven and focused on a conception of transparency as simple disclosure. Faced with an endless string of development priorities in need of financing, governments are often happy to accept offers of lending even when the conditions are not advantageous, pushing the cost of repayment to future governments - and future generations - with little accountability. Yet debt negotiations have left little room for the public and oversight actors to have a say in how governments are managing these risks.īorrowing governments face very limited domestic pressure when it comes to lending. Over the past decade, public debt across the developing world became more expensive and opaque as new lenders emerged, pushing governments into more vulnerable fiscal positions. To break the déjà vu on recurring debt crises, domestic accountability systems should be supported in borrower countries to ensure greater transparency and public debate around debt management.Ĭurrently, we have a democratic deficit in the way many countries manage debt. While international pressure on creditors is essential and should continue, borrower governments must also fulfill their responsibility by informing and engaging the public about the debt being taken on in their name. Some lenders have improved their transparency standards, but others opt for opacity. Both borrowers and lenders have a responsibility to be transparent over loan contracts, and doing so is good for everyone.
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