Sri Lanka’s government is in shambles and the country is in chaos. Pakistan has just received a $ 4 billion emergency aid rescue from the International Monetary Fund. Ghana has also requested a rescue package. Protests over rising inflation have erupted from Ecuador to Tunisia.
Financial and political crises are brewing across parts of developing countries, especially in smaller low- and middle-income countries, which in recent years have accumulated foreign currency debt to see them through the pandemic and are now under pressure from rising fuel and food costs, stemming from the war in Ukraine and from higher borrowing costs.