A new wave of debt crisis is sweeping across the Global South—once again threatening the fulfillment of economic and social rights. Budgets are being drained to repay external creditors, while health systems struggle, classrooms shut down, and climate resilience is left unfunded. This is not just a financial emergency—it is a human rights crisis.
Our latest publication, Designing Human Rights-Aligned Reforms for Debt Restructurings, is the third in the Sovereign Debt Working Paper Series—a collaborative effort led by our allies at the Institute for Economic Justice (IEJ). Authored by Ohene Ampofo-Anti, Charlotte Inge, Matthew Forgette, María Emilia Mamberti, and Kamal Ramburuth, the paper offers a clear and practical solution: a fair and comprehensive debt restructuring mechanism grounded in human rights. It proposes a new multilateral framework (transparent, inclusive, and independent from creditor influence) to ensure that debt crises are resolved in ways that uphold rights and protect lives. Without such reform, governments will remain trapped in austerity cycles that deepen poverty and inequality.
Instead of managing debt as a technical problem, this paper makes the case for grounding debt restructuring in international human rights law. It proposes a statutory, multilateral mechanism housed at the UN, built on principles of equity, self-determination, transparency, and accountability. Crucially, it centres the rights and participation of people affected by debt and austerity—something today’s frameworks consistently ignore.
In it, we outline practical steps to get there:
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Integrate human rights impact assessments into debt sustainability analysis
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Guarantee minimum levels of public investment in health, education, and social protection
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Require inclusive, participatory restructuring processes
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Shift decision-making power from creditors to multilateral, rights-based institutions
Explore the full series:
