Climate finance is as much a tactical issue as it is a moral one

Avinash Persaud, climate finance expert and special envoy to the prime minister of Barbados

- NIRMAL JOVIAL

THE WORLD IS facing a confluence of problems that arose from Covid, climate disasters and regional conflicts. Barbadian economist of Indian origin Avinash Persaud is seen as a man who can help solve them. He is the key brain behind the Bridgetown Initiative of Barbados that sets out three ways to change how development finance works on the global stage. His pragmatic solutions to reform the international financial systems and climate financing are getting support both from the developed and the developing world. Persaud calls himself a “man in a hurry” and urges the world to make every effort needed to save the planet. Excerpts from an exclusive interview:

Q/ The world, especially the global south, is facing hardships because of many shocks—Covid, climate disasters, Russia-Ukraine conflict and a strong dollar. Do you think there is widespread pessimism in the global economic sphere?

A/ The world is at a very difficult place. You mentioned Covid. And that led to a significant increase in debt, a shock to our economic systems that not all countries have managed to get over. And then related to Covid, the big fiscal stimulus in the wealthy countries is now raising interest rates and [the result is a] strong US dollar. And that is compounding the problem. That is why an unprecedented number of countries around the world are facing a debt crunch, and appealing to the International Monetary Fund for short-term support. So, we are in a very uncertain, fragile place, underscoring the inadequacy of the international environment to help out emerging and developing economies.

Q/ Will the debt crisis in emerging markets affect India?