Democratic Reset: Transparency and Accountability Lessons to Break the Debt Crisis Cycle

Public debt is at the highest levels in 50 years and triple 2008 levels. The world’s poorest countries spend more on debt service payments than on health, education and social protection combined. Austerity exacts a particularly high toll on women and other vulnerable groups.The democratic dimensions of debt are less-explored but equally critical. Loans are often contracted without public or parliamentary scrutiny and in the worst cases without the existence of the loan being disclosed at all. According to the World Bank, 40 percent of low-income countries have not published any data about their sovereign debt for more than two years. Absent disclosure, the public, media and parliaments are unable to conduct basic oversight, increasing the risks of waste and corruption. As borrowers and lenders prepare to gather in Washington for the World Bank/IMF Spring Meetings, it’s urgent that both sides commit to correct the democratic deficit of opaque and unsustainable debt.
To contribute to the public debt conversation, the National Democratic Institute, Open Government Partnership, and Chandler Foundation have partnered to convene a high-level panel of experts and practitioners to share transparency and accountability lessons learned.