ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles By Debt

Lessons from a Zambian Stand-off

The Zambian experience suggests that the prevailing international financial architecture aims to get bilateral creditors, in this case principally China, to carry the burden of a restructuring process which protects the interests of, and even favours, private creditors who leveraged cheap capital and rushed into the less developed country market in search of high yields.

Farmer Suicides in Punjab

The article is based on a primary survey carried out to ascertain the magnitude and determinants of deaths of farmers by suicide in six districts of Punjab. It recommends the provision of financial compensation to victim families, waiving of debt, and strengthening of public healthcare and education system as the main policy measures for addressing this tragic phenomenon.

Impact of Public Debt on the Economic Growth of Subnational Economies in India

This study examines both the short- and long-run impact of public debt on the economic growth of Uttar Pradesh during the post-reform period of 30 years by employing the vector error correction model. The empirical analysis revealed that the increase in public debt-to-gross state domestic product ratio and interest payments burden would have an adverse impact on the long-run economic growth of UP, while having no significant impact on the short-run growth. It is also notable that the effective interest rate has negatively correlated with the gross capital formation in UP, and the latter has shown significant positive long-run association with the economic growth. In order to attract investments and economic growth, the state Government of UP should continue a countercyclical fiscal stance that would help in adhering to fiscal sustainability rules by smoothing out the repercussions of the COVID-19 pandemic.

The Renewed Fear of Bad Debt

The evidence of a decline in the non-performing assets ratio in India’s banking system points to a significant improvement in the health of banks. However, this may have occurred partly through the use of write-offs that erode the capital base of banks and also because of the time-bound moratorium on debt repayments announced as part of measures to address the effects of the pandemic on small units and other selected borrowers. In the circumstances, even though new pandemic-linked lending to micro, small and medium enterprises was partly guaranteed by the government, a rise in the NPA ratios and further erosion of bank capital seem inevitable.

 

Surviving Debt and Survival Debt in Times of Lockdown

This research has been made possible due to the financial support of the Agence Universitaire de la Francophonie (AUF), through the COVINDIA project, which combines food distribution to villagers and a survey of villagers’ survival tactics and strategies. For more details, see https://odriis.hypotheses.org/projects#covindia. We sincerely thank Barbara Harriss-White, Judith Heyer, Solène Morvant-Roux, and Jean-Michel Servet for their helpful comments on an earlier draft.

 
 

Suicide by Maharashtra Farmers

The present paper relies on the census survey of the suicide-affected farmers’ households from the two most vulnerable districts of Maharashtra from 2014 to 2017 when the largest number of farmers’ suicide cases was reported after the 2008 farm debt waivers. A complex mix of social, economic, and psychological factors
play their role in translating into farmers’ suicide. The study covers the districts of Usmanabad from Marathwada and Yavatmal from the Vidarbha region of Maharashtra, respectively.