Staff Reports
Last year, the world’s public debt soared to a staggering $97 trillion, according to Pope Francis. He believes that significant changes are necessary to prevent this figure from escalating further. A United Nations report revealed a $5.6 trillion increase in debt from 2022, with interest payments hitting developing nations particularly hard. Countries like the United States and Germany are able to borrow at much lower rates, exacerbating the disparity.
Pope Francis is especially concerned due to the situation in his home country, Argentina, which has defaulted on its debt for the third time since 2000. He emphasized the urgent need for a “multinational mechanism” to address the economic and social implications of the growing debt crisis, warning that without such a mechanism, the weakest members of society will continue to suffer.
U.N. Trade and Development, formerly known as UNCTAD, said the value of money owed by governments rose by $5.6 trillion from 2022. In its report entitled "A World of Debt," the agency said high interest payments are outstripping growth in essential public spending.
The United… pic.twitter.com/oN7WZHuZRU
— Africa Economic Forum (@aeforumm) June 5, 2024
The United Nations report also highlighted the detrimental impact of debt on daily lives, noting that 3.3 billion people live in countries where more money is spent on interest payments than on crucial areas such as climate, education, and health. Nearly half of the 54 countries examined were in Africa. Pope Francis urged governments to prioritize the well-being of their citizens and to protect them from debt-related hardships.
The U.N. Conference on Trade and Development has proposed a stimulus package to fund sustainable development goals and create a new “debt workout mechanism.” The Catholic Church, drawing on its past success in addressing debt crises, could play a significant role in finding solutions to this global issue, akin to its efforts in forgiving billions of dollars of debt for the world’s poorest countries between 2000 and 2015.
