Who is the money owed to, and who controls global finance?

Debt: A Short Introduction for Adult Learners 

Every year countries of the Global South spend $300 billion on debt repayments. Debt causes poverty in the affected populations and undermines economic, social, and cultural rights. This introduction will describe how debt crises happen, why debt is a justice issue, and what needs to change to achieve debt justice.

Who is the money owed to, and who controls global finance?

Countries borrow money from other countries (bilateral lending), multilateral institutions (e.g. the IMF, World Bank, African Development Bank), and private lenders (e.g. commercial banks and funds). Lenders dominate in setting the rules and definitions surrounding debt issues, especially the International Financial Institutions (IFIs), the World Bank and the IMF. 

• The World Bank

Aim: To end extreme poverty and boost shared prosperity
Activities: Gives loans for specific projects with conditions, or policy advice, to countries in the Global South. 

• The IMF (International Monetary Fund)

Aim: To create global financial stability and sustainable economic growth.
Activities: Gives loans to countries who are in financial trouble. IMF loans come with strict conditions.