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東京大学公共政策大学院 | GraSPP / Graduate School of Public Policy | The university of Tokyo

Professor Toshiro Nishizawa’s article “Debt cancellation not a cure-all for debt-distressed Asia” published by East Asia Forum 2024年08月22日(木)

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Professor Toshiro Nishizawa‘s article titled “Debt cancellation not a cure-all for debt-distressed Asia” was published by the East Asia Forum. The main thrust of his argument is as follows.

The Paris Club’s decision in March 2024 to cancel over US$2 billion of Somalia’s external debt may have significant implications for debt-distressed economies in Asia, such as Laos and Papua New Guinea. While debt cancellation looks good on paper, the Paris Club’s poor track record of debt cancellation proves that it is not a cure-all for debt-ridden economies. Debt restructuring that includes incentives for sound debt management would be the most feasible option for Laos and Papua New Guinea.