The pandemic has disproportionately affected LIDCs across the globe; with LIDCs lacking access to financial capital, they face domestic economic decline and forecast increased levels of poverty. As LIDCs struggle with limited financial capital, can financial markets play a role in helping LIDCs during the pandemic?
What happens when entire countries can no longer pay their debts in the 21st century? Is the international economy strong enough to handle dozens of insolvent countries—especially in the middle of a global pandemic? This article explores how countries became indebted before and during COVID-19 and whether the current strategy of sovereign debt reduction is an effective way to stabilize countries in the midst of a public health crisis.