G20's Shift to U.S. Leadership Amid Global South's Debt Crisis

The G20 presidency transitions from South Africa to the U.S. amid rising debt issues in poorer countries. Despite efforts under the Common Framework, debt reworks remain limited. The U.S. aims to address these challenges, focusing on debt solutions and economic growth, as the G20 faces reform calls.

The G20's leadership shift from South Africa to the United States occurs as debt challenges in poorer countries threaten to escalate, testing the group's commitment to debt relief. The transition follows a period under emerging economies like Indonesia, India, and Brazil, where debt sustainability became a priority.

Debt levels across emerging economies have surged, surpassing $100 trillion. Notable cases include Senegal, facing borrowing-induced crises, and Gabon's reliance on liability-management deals. The G20's Common Framework, launched in 2020 to facilitate debt restructuring post-COVID, has seen limited success, prompting calls for reforms.

Under U.S. guidance, the G20 aims to address debt and economic growth, sustaining engagement through its Africa Engagement Framework. Calls for revising debt sustainability frameworks persist, seeking better financing conditions for poorer nations as the G20's historical influence is re-evaluated.

(With inputs from agencies.)