Rising Debt Burden and Its Impact on the Implementation of Three (3) Sustainable Development Goals in the Commonwealth African Member Countries (2016-2022)

Joseph Alimamy Thullah

doi:doi:10.11648/j.jwer.20231201.11

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Rising Debt Burden and Its Impact on the Implementation of Three (3) Sustainable Development Goals in the Commonwealth African Member Countries (2016-2022)

Joseph Alimamy Thullah

Published in Journal of World Economic Research (Volume 12, Issue 1)

Received: 3 January 2023 Accepted: 21 February 2023 Published: 4 March 2023

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Abstract

This paper examined rising debt burden and its implication for implementing three (3) selected Sustainable Development Goals (SDGs) in the Commonwealth African member states. The methodology was mainly “Desk Research’’ with data collected from the World Bank Data Online Portal, covering the period 2016-2020. The approach analysis was to compare the estimated debt servicing obligations against estimated costs on investments on the selected SDGs and discuss its implications for successfully meeting these goals by 2030, under the assumption of rising public debt burden and low growth. The findings were as follows: - (i). Public debt stocks in all of these Commonwealth African states were already high, even, before COVID-19 which struck late in 2019, experiencing a very high-debt-to GDP ratios; that was far above 50 percent- Mozambique (116 %), Mauritius (105%), Zambia (85%) and Zimbabwe (61%) were spotted to have very high debt- to-GDP ratio amongst these member states. (ii). economic growth and domestic revenue collection in all of these Commonwealth African member states deteriorated in the year following the outbreak of the COVID-19. This widened the deficit and hence, the cycle of increased borrowing and rising debt burden continued unabated in these member states. (iii). none of these (20) Commonwealth African member states had invested enough in the SDGs to have come closer to meeting the internationally acceptable minimum annual expenditure threshold of 15-20% of GDP needed to achieve any of these three (3) selected SDGs. Governments therefore are encouraged to improve key aspects of macroeconomic fundamentals in order to improve domestic productivity, innovations in private sector involvement and stimulate overall confidence in the domestic economy in order to achieve the SDG agenda 2030.

Published in	Journal of World Economic Research (Volume 12, Issue 1)
DOI	10.11648/j.jwer.20231201.11
Page(s)	1-18
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2023. Published by Science Publishing Group

Keywords

Rising Debt Burden, Economic Growth, COVID-19, SDG3, SDG4, SDG17

References

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[3]	Dana Vorisek Shu Yu, 2020. Understanding the Cost of Achieving the Sustainable Development Goals, Policy Research Working Paper 9146, World Bank Equitable Growth, Finance and Institutions Practice Group, retrieved February 9 2023, from https://documents1.worldbank.org/curated/en/744701582827333101/pdf/Understanding-the-Cost-of-Achieving-the-Sustainable-Development-Goals.pdf
[4]	Jermaine Leonard, 2020. Zambia's 2019 Debt Rise Highlights Fiscal Challenges (fitchratings.com), retrieved 8th February 2023 from https://www.fitchratings.com/research/sovereigns/zambia-2019-debt-rise-highlights-fiscal-challenges-05-03-2020.
[5]	OECD, 2020. COVID-19 and Africa: Socio-economic implications and policy responses, May 2020, OECD Policy Responses to Coronavirus (COVID-19),
[6]	Brahima S. Coulibaly, Dhruv Gandhi, Lemma W. Senbet, (2019). Is sub-Saharan Africa facing another systemic sovereign debt crisis, Policy Brief Africa Growth Initiatives at Brookings, Policy Brief.
[7]	Debt Justice, 2023; Countries in Debt Crisis, Accessed 18^th February, 2023 from https://debtjustice.org.uk/countries-in-crisis
[8]	OCHA Services Policy web, 2020. Brief: The Impact of COVID-19 on children. Retrieved 17th February 2023 from https://reliefweb.int/report/world/policy-brief-impact-covid-19-children?
[9]	The Millennium Development Goals Report 2015, Millennium Development Goals – MDGs, Retrieved On 18th February 2023 https://www.undp.org/publications/millennium-development-goals-report-2015?
[10]	United Nations, Department of Economic and Social Affairs Sustainable Development. Global Sustainable Development Report 2019, The Future Is Now For Achieving Sustainable Development, retrieved 18 February 2023 from https://sustainabledevelopment.un.org/content/documents/24797GSDR_report_2019.pdf.
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[12]	Open Vault Blog, https://www.stlouisfed.org/open-vault/2020/october/debt-gdp-ratio-how-high-too-high-it-dependsDebt-to-GDP Ratio: How High Is Too High? It Depends \| St. Louis Fed (stlouisfed.org) Accessed_29/12/2022.
[13]	Debt Justice, Debt Jubilee, Debt Data Portal, About Our Risk Analysis Sources, Accessed Monday 26^th February, 2027, from https://data.debtjustice.org.uk/our-analysis.php
[14]	The Sunday Standard, 2023. Botswana is falling short of SDG targets, retrieved on Saturday 18 February 2023, from https://www.sundaystandard.info/botswana-is-falling-short-of-sdg-targets/
[15]	Global Citizens, News Publications 2022. How Close Is South Africa to Achieving the Global Goals, Global Citizen, retrieved on 17^th February 2023 from https://www.globalcitizen.org/en/content/sou.
[16]	Ministry of Finance of Ghana, 2021. Ghana’s SDGs Budget Report, 2019-2020. Retrieved from https://mofep.gov.gh/news-and-events/2021-03-11/ghanas-2020-sdgs-budget-report

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APA Style

Joseph Alimamy Thullah. (2023). Rising Debt Burden and Its Impact on the Implementation of Three (3) Sustainable Development Goals in the Commonwealth African Member Countries (2016-2022). Journal of World Economic Research, 12(1), 1-18. https://doi.org/10.11648/j.jwer.20231201.11

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ACS Style

Joseph Alimamy Thullah. Rising Debt Burden and Its Impact on the Implementation of Three (3) Sustainable Development Goals in the Commonwealth African Member Countries (2016-2022). J. World Econ. Res. 2023, 12(1), 1-18. doi: 10.11648/j.jwer.20231201.11

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AMA Style

Joseph Alimamy Thullah. Rising Debt Burden and Its Impact on the Implementation of Three (3) Sustainable Development Goals in the Commonwealth African Member Countries (2016-2022). J World Econ Res. 2023;12(1):1-18. doi: 10.11648/j.jwer.20231201.11

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@article{10.11648/j.jwer.20231201.11,
  author = {Joseph Alimamy Thullah},
  title = {Rising Debt Burden and Its Impact on the Implementation of Three (3) Sustainable Development Goals in the Commonwealth African Member Countries (2016-2022)},
  journal = {Journal of World Economic Research},
  volume = {12},
  number = {1},
  pages = {1-18},
  doi = {10.11648/j.jwer.20231201.11},
  url = {https://doi.org/10.11648/j.jwer.20231201.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20231201.11},
  abstract = {This paper examined rising debt burden and its implication for implementing three (3) selected Sustainable Development Goals (SDGs) in the Commonwealth African member states. The methodology was mainly “Desk Research’’ with data collected from the World Bank Data Online Portal, covering the period 2016-2020. The approach analysis was to compare the estimated debt servicing obligations against estimated costs on investments on the selected SDGs and discuss its implications for successfully meeting these goals by 2030, under the assumption of rising public debt burden and low growth. The findings were as follows: - (i). Public debt stocks in all of these Commonwealth African states were already high, even, before COVID-19 which struck late in 2019, experiencing a very high-debt-to GDP ratios; that was far above 50 percent- Mozambique (116 %), Mauritius (105%), Zambia (85%) and Zimbabwe (61%) were spotted to have very high debt- to-GDP ratio amongst these member states. (ii). economic growth and domestic revenue collection in all of these Commonwealth African member states deteriorated in the year following the outbreak of the COVID-19. This widened the deficit and hence, the cycle of increased borrowing and rising debt burden continued unabated in these member states. (iii). none of these (20) Commonwealth African member states had invested enough in the SDGs to have come closer to meeting the internationally acceptable minimum annual expenditure threshold of 15-20% of GDP needed to achieve any of these three (3) selected SDGs. Governments therefore are encouraged to improve key aspects of macroeconomic fundamentals in order to improve domestic productivity, innovations in private sector involvement and stimulate overall confidence in the domestic economy in order to achieve the SDG agenda 2030.},
 year = {2023}
}

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TY  - JOUR
T1  - Rising Debt Burden and Its Impact on the Implementation of Three (3) Sustainable Development Goals in the Commonwealth African Member Countries (2016-2022)
AU  - Joseph Alimamy Thullah
Y1  - 2023/03/04
PY  - 2023
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DO  - 10.11648/j.jwer.20231201.11
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 1
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PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20231201.11
AB  - This paper examined rising debt burden and its implication for implementing three (3) selected Sustainable Development Goals (SDGs) in the Commonwealth African member states. The methodology was mainly “Desk Research’’ with data collected from the World Bank Data Online Portal, covering the period 2016-2020. The approach analysis was to compare the estimated debt servicing obligations against estimated costs on investments on the selected SDGs and discuss its implications for successfully meeting these goals by 2030, under the assumption of rising public debt burden and low growth. The findings were as follows: - (i). Public debt stocks in all of these Commonwealth African states were already high, even, before COVID-19 which struck late in 2019, experiencing a very high-debt-to GDP ratios; that was far above 50 percent- Mozambique (116 %), Mauritius (105%), Zambia (85%) and Zimbabwe (61%) were spotted to have very high debt- to-GDP ratio amongst these member states. (ii). economic growth and domestic revenue collection in all of these Commonwealth African member states deteriorated in the year following the outbreak of the COVID-19. This widened the deficit and hence, the cycle of increased borrowing and rising debt burden continued unabated in these member states. (iii). none of these (20) Commonwealth African member states had invested enough in the SDGs to have come closer to meeting the internationally acceptable minimum annual expenditure threshold of 15-20% of GDP needed to achieve any of these three (3) selected SDGs. Governments therefore are encouraged to improve key aspects of macroeconomic fundamentals in order to improve domestic productivity, innovations in private sector involvement and stimulate overall confidence in the domestic economy in order to achieve the SDG agenda 2030.
VL  - 12
IS  - 1
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Author Information

Joseph Alimamy Thullah

Public Debt Management Division Ministry of Finance and Fourah Bay College, University of Sierra Leone, Freetown, Sierra Leone

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APA Style

Joseph Alimamy Thullah. (2023). Rising Debt Burden and Its Impact on the Implementation of Three (3) Sustainable Development Goals in the Commonwealth African Member Countries (2016-2022). Journal of World Economic Research, 12(1), 1-18. https://doi.org/10.11648/j.jwer.20231201.11

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ACS Style

Joseph Alimamy Thullah. Rising Debt Burden and Its Impact on the Implementation of Three (3) Sustainable Development Goals in the Commonwealth African Member Countries (2016-2022). J. World Econ. Res. 2023, 12(1), 1-18. doi: 10.11648/j.jwer.20231201.11

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AMA Style

Joseph Alimamy Thullah. Rising Debt Burden and Its Impact on the Implementation of Three (3) Sustainable Development Goals in the Commonwealth African Member Countries (2016-2022). J World Econ Res. 2023;12(1):1-18. doi: 10.11648/j.jwer.20231201.11

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@article{10.11648/j.jwer.20231201.11,
  author = {Joseph Alimamy Thullah},
  title = {Rising Debt Burden and Its Impact on the Implementation of Three (3) Sustainable Development Goals in the Commonwealth African Member Countries (2016-2022)},
  journal = {Journal of World Economic Research},
  volume = {12},
  number = {1},
  pages = {1-18},
  doi = {10.11648/j.jwer.20231201.11},
  url = {https://doi.org/10.11648/j.jwer.20231201.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20231201.11},
  abstract = {This paper examined rising debt burden and its implication for implementing three (3) selected Sustainable Development Goals (SDGs) in the Commonwealth African member states. The methodology was mainly “Desk Research’’ with data collected from the World Bank Data Online Portal, covering the period 2016-2020. The approach analysis was to compare the estimated debt servicing obligations against estimated costs on investments on the selected SDGs and discuss its implications for successfully meeting these goals by 2030, under the assumption of rising public debt burden and low growth. The findings were as follows: - (i). Public debt stocks in all of these Commonwealth African states were already high, even, before COVID-19 which struck late in 2019, experiencing a very high-debt-to GDP ratios; that was far above 50 percent- Mozambique (116 %), Mauritius (105%), Zambia (85%) and Zimbabwe (61%) were spotted to have very high debt- to-GDP ratio amongst these member states. (ii). economic growth and domestic revenue collection in all of these Commonwealth African member states deteriorated in the year following the outbreak of the COVID-19. This widened the deficit and hence, the cycle of increased borrowing and rising debt burden continued unabated in these member states. (iii). none of these (20) Commonwealth African member states had invested enough in the SDGs to have come closer to meeting the internationally acceptable minimum annual expenditure threshold of 15-20% of GDP needed to achieve any of these three (3) selected SDGs. Governments therefore are encouraged to improve key aspects of macroeconomic fundamentals in order to improve domestic productivity, innovations in private sector involvement and stimulate overall confidence in the domestic economy in order to achieve the SDG agenda 2030.},
 year = {2023}
}

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TY  - JOUR
T1  - Rising Debt Burden and Its Impact on the Implementation of Three (3) Sustainable Development Goals in the Commonwealth African Member Countries (2016-2022)
AU  - Joseph Alimamy Thullah
Y1  - 2023/03/04
PY  - 2023
N1  - https://doi.org/10.11648/j.jwer.20231201.11
DO  - 10.11648/j.jwer.20231201.11
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 1
EP  - 18
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20231201.11
AB  - This paper examined rising debt burden and its implication for implementing three (3) selected Sustainable Development Goals (SDGs) in the Commonwealth African member states. The methodology was mainly “Desk Research’’ with data collected from the World Bank Data Online Portal, covering the period 2016-2020. The approach analysis was to compare the estimated debt servicing obligations against estimated costs on investments on the selected SDGs and discuss its implications for successfully meeting these goals by 2030, under the assumption of rising public debt burden and low growth. The findings were as follows: - (i). Public debt stocks in all of these Commonwealth African states were already high, even, before COVID-19 which struck late in 2019, experiencing a very high-debt-to GDP ratios; that was far above 50 percent- Mozambique (116 %), Mauritius (105%), Zambia (85%) and Zimbabwe (61%) were spotted to have very high debt- to-GDP ratio amongst these member states. (ii). economic growth and domestic revenue collection in all of these Commonwealth African member states deteriorated in the year following the outbreak of the COVID-19. This widened the deficit and hence, the cycle of increased borrowing and rising debt burden continued unabated in these member states. (iii). none of these (20) Commonwealth African member states had invested enough in the SDGs to have come closer to meeting the internationally acceptable minimum annual expenditure threshold of 15-20% of GDP needed to achieve any of these three (3) selected SDGs. Governments therefore are encouraged to improve key aspects of macroeconomic fundamentals in order to improve domestic productivity, innovations in private sector involvement and stimulate overall confidence in the domestic economy in order to achieve the SDG agenda 2030.
VL  - 12
IS  - 1
ER  -

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