Can the "Shanghai Model" Solve the Global South Debt Crisis?

During the last major Global South debt crisis in the late 1980s, the United States pioneered an initiative that bundled together all of these countries' debts into a bond that would then be re-packaged and sold to investors. These so-called "Brady Bonds" were very effective in giving many of the poorest, most indebted countries the breathing room they needed to recover. Now, as developing countries are confronting yet another debilitating debt crisis, an update to the Brady Bond idea is now circulating but this time it's coming from China, not the U.S. Just like a Brady Bond, the so-called Shanghai Model would roll up poor countries' debt into a bond asset and then sell it to investors. But there's a catch: rather than price it in dollars, the Shanghai Model would use Chinese yuan. Economists Ying Qian and Yan Wang from Boston University's Global Development Policy Center have been writing a lot lately about the Shanghai Model and exploring its viability. Ying joins Eric & Cobus from Washington, D.C. to discuss whether it really can replicate the success of the Brand Bond. JOIN THE DISCUSSION: Twitter: @ChinaAfrProject | @stadenesque Facebook: www.facebook.com/ChinaAfrica Project FOLLOW CAP IN FRENCH AND ARABIC: Français: www.projetafriquechine.com | @AfrikChine عربي: @AkhbarAlSinAfr JOIN US ON PATREON! Become a CAP Patreon member and get all sorts of cool stuff including our Week in Review report, an invitation to join monthly Zoom calls with Eric & Cobus, and even an awesome new CAP Podcast mug! www.patreon.com/chinaafricaproject See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Release date

Lydbog: 8. april 2022