Introduction
As discussed in this analysis, establishing a broadly accepted and consistent information base regarding existing debt obligations is a foundational requirement for successful systemic reform—a need heightened by the dramatic shift in the number of funding sources since the Global Financial Crisis. This is far from the whole story, however. Beyond agreement on data sources, clarity—and predictability—regarding organizational and analytical aspects of setting the specific terms for debt relief will be vital. As a result, the key reform goal in this regard should be viewed as “procedural transparency” in order to signal the breadth of the reforms that will be required for success, beyond simple “data transparency.”
The SDWG’s intention for this publication is to spur meaningful work on market reforms. There is no doubt that the upcoming challenge of dealing with sovereign debt issues will engage International Financial Institutions (IFIs), international organizations such as the Organization for Economic Co-operation and Development (OECD), bilateral official agencies, and private sector lenders, as well as borrowing sovereigns. As the current report concludes, “The time has come for a transparency agenda that consists of actionable measures that create tangible incentives and consequences to change behavior.” Effective action is necessary and long overdue.
