{"id":160281,"date":"2023-01-20T16:33:40","date_gmt":"2023-01-20T21:33:40","guid":{"rendered":"https:\/\/www.one.org\/us\/?post_type=one_press&p=160281"},"modified":"2023-09-05T10:57:45","modified_gmt":"2023-09-05T10:57:45","slug":"yellen-debt-crisis","status":"publish","type":"one_press","link":"https:\/\/www.one.org\/us\/press\/yellen-debt-crisis\/","title":{"rendered":"ONE Reacts to Secretary Yellen’s Remarks in Senegal"},"content":{"rendered":"

WASHINGTON\u2013 The ONE Campaign released the following statement today in response to remarks<\/a> made by US Treasury Secretary Janet Yellen during a visit to Dakar, Senegal, <\/span>the first stop on her two-week, three-country trip to Africa.<\/p>\n

\u201cAfrica will shape the future of the global economy, and the US must nurture a long-term partnership that addresses challenges and taps into the vast economic opportunities,\u201d said Tom Hart, president of The ONE Campaign<\/strong>. \u201cAs part of that, the US must be laser-focused on leading solutions to address the debt crisis affecting many countries in Africa. Not only does it have drastic impacts on economies’ ability to grow, the human cost is significant. More money spent on debt servicing means less spent on health, education, and other services. If not immediately addressed, another 20 million people will be at risk of falling into extreme poverty.\u201d<\/p>\n

Background:<\/strong><\/span><\/p>\n

Secretary Yellen\u2019s trip, the first cabinet-level visit since the US-Africa Leaders Summit in December, comes as many African countries teeter on the edge of an economic crisis. By all accounts<\/a> \u2013 and for all economies \u2013 2023 is not shaping up to provide much-needed relief. Inflation, food insecurity, and climate shocks continue to put pressure on economies and public finances, many of which are already struggling under the stunning weight of debt.<\/p>\n

22 African countries are now either bankrupt or at high risk<\/a> of debt distress, and African debt remains at its highest level in over a decade. With debt service consuming increasingly large proportions of budgets and revenues, a wave of defaults in the world\u2019s most vulnerable countries could occur even faster than expected. Beyond responding to the debt crisis \u2013 an urgent priority \u2013 countries will need injections of new money and investment to help drive response and recovery.<\/p>\n

Take a look at Zambia, where Secretary Yellen heads on Saturday.<\/p>\n