From left to right: Kamal Ramburuth (IEJ); María Emilia Mamberti (CESR), Marina Zucker Marques (GDP Center, Boston University), Penelope Hawkins (UNCTAD), Joseph E. Stiglitz, Mzwanele Ntshwanti (IEJ).
Leading economists and advocates, including Nobel laureate Joseph Stiglitz, gathered to call for urgent reform of the sovereign debt system. Stiglitz praised the new Sovereign Debt Working Paper Series—led by the Institute for Economic Justice (IEJ), with contributions from CESR and Boston University’s Global Development Policy Center—for identifying the principles needed to move toward a fairer international financial system.
At an event hosted by the South African Embassy during the IMF and World Bank Spring Meetings, leading economists, advocates, and policymakers launched the Sovereign Debt Working Paper Series—led by the Institute for Economic Justice (IEJ), with contributions from the Center for Economic and Social Rights (CESR) and Boston University’s Global Development Policy Center. The event was organized with the support of the Bretton Woods Project.
Opening the discussion, Mzwanele Ntshwanti of IEJ framed sovereign debt not simply as a technical issue but as “a deep structural, political problem, and a moral question of our time.”
Our Research & Policy Lead, María Emilia Mamberti, introduced Designing Human Rights-Aligned Reforms for Debt Restructurings, CESR’s contribution to the series. She highlighted how today’s debt restructuring frameworks systematically fail to protect the rights of people living in debt-distressed countries: “Human rights allow us to see that the debt debate is not only between creditors and debtors, but also involves the rights of the populations of debtor states,” Mamberti explained.
She stressed that governments facing debt distress must still prioritize the minimum essential levels of economic and social rights, and outlined the paper’s call for a statutory, multilateral debt restructuring mechanism housed at the United Nations. Reflecting on Argentina’s experience, she noted: “For any Argentine person, knowing the name, face, and ideas of the IMF Managing Director is much more familiar than knowing the name of their Minister of Education—because the impacts on their real lives are much more significant.”
Penelope Hawkins of UNCTAD also joined the discussion, emphasizing the need for stronger collective negotiation strategies among debtor countries. She stressed: “Debt is necessary for development. Getting development back on track needs appropriately scaled and priced development finance.” She described the situation many countries face today as being like “Hotel California—you can check out anytime you want, but you can never leave.”
Marina Zucker Marques of Boston University’s Global Development Policy Center presented Diverting Development: The G20 and External Debt Service Burden in Africa, warning: “Africa could be boosting its climate goals if it weren’t trapped by crushing debt service costs.” She emphasized that debt service costs are outstripping essential investments in health and education, and called for bolder reform of the G20’s Common Framework to align debt processes with development priorities.
In his keynote reflections, Nobel laureate Professor Joseph Stiglitz reinforced the urgency of structural change. He underlined that sovereign debt crises are not isolated or accidental—they are the result of deeper systemic injustices: “There are fundamental flaws in the international financial markets—flaws in the global architecture that disadvantage poor countries.”
Stiglitz praised the launch of the Sovereign Debt Working Paper Series, emphasizing its relevance: “I think the series of papers is very important because it identifies the principles that should guide us in restructuring sovereign debt and moving toward a fairer international financial system.”
He also pointed out the contradictions that define current creditor behavior:“Private creditors want debt sustainability—and high interest rates. If you can square that circle, you deserve a Nobel Prize.”
Throughout the event, panelists agreed: without bold reform of the sovereign debt system, governments will remain trapped in austerity cycles that deepen poverty and inequality. But a different future is possible—one where debt processes are transparent, participatory, and centered on human rights and sustainable development.
The Sovereign Debt Working Paper Series contributes to building that future by showing that sovereign debt restructuring can and must be redesigned to serve justice, dignity, and development.