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Obstacles to progress

Realities

1 “ These figures show the debt owed by the whole country (government debt and private

sector debt) compared to the debt owed to that country (owed to both the government and
private sector). A negative figure shows that the country owes more than it is owed (ie, it is a

net debtor), and a positive figure shows that it is owed more than it owes (ie, it is a net
creditor).A large negative figure shows a large financial imbalance with the rest of the world,

which carries with it a greater risk of financial crisis.
2 These figures show the amount a government is spending on debt payments (principal and

interest) which leave the country, as a percentage of government revenue. They are a much
better guide to debt burdens than government debt as a percentage of GDP, as they take into
account interest rates on the debt, the amount of government revenue available to pay the

debt, and whether the payments leave the country.
3 A country's current account balance measures how much a country (the government and

private sector) is paying to and earning from the rest of the world. A country spending more
than it is earning has a negative figure, and positive is vice versa. If a country has a negative

current account balance, this must be paid for, for instance by borrowing from or selling off
assets to people elsewhere in the world.”
Source : Jubilee Debt Campaign 223
August 2020
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