A framework to reduce the burden of debt must: (a) allow debtors to grow faster and export more; (b) enable the cost of debt service to fall.
Possible financial options include: (a) inflow of new capital through foreign direct investment; (b) conversion of foreign currency debt into domestic currency investment through debt equity swaps, thus altering the debtors' obligation and reducing their interest-bearing external debt; (c) conversion of existing loans into local currencies, thus repatriating flight capital and alleviating the drain on foreign currency resources; (d) using performance bonds or commodity-indexed bonds as a source of new money, although this would not significantly reduce debt overhang; (e) cushioning interest rate and currency shocks to debtor countries through financial engineering and liability management - for example, interest rate swaps and interest rate caps reduce interest rate sensitivity of existing liabilities by converting floating rate borrowings into fixed rate liabilities or by putting a ceiling on future interest rates; (f) new contractual arrangements between debtors and lenders, for example by subordinating existing debt to future loans, giving the latter senior status; (g) sharing the burden between debtors and creditors and providing debt relief by partial write-offs of existing loans; (h) partial or complete interest capitalization as an alternative to accumulating new loans to finance interest due.
The Encyclopedia of World Problems and Human Potential is a unique, experimental research work of the Union of International Associations. It is currently published as a searchable online platform with profiles of world problems, action strategies, and human values that are interlinked in novel and innovative ways. These connections are based on a range of relationships such as broader and narrower scope, aggravation, relatedness and more. By concentrating on these links and relationships, the Encyclopedia is uniquely positioned to bring focus to the complex and expansive sphere of global issues and their interconnected nature.
The initial content for the Encyclopedia was seeded from UIA’s Yearbook of International Organizations. UIA’s decades of collected data on the enormous variety of association life provided a broad initial perspective on the myriad problems of humanity. Recognizing that international associations are generally confronting world problems and developing action strategies based on particular values, the initial content was based on the descriptions, aims, titles and profiles of international associations.
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