Macro N Cheese

It will come as no surprise to our listeners that countries of the Global South are mired in a foreign debt crisis and that default is directly tied to the lack of monetary sovereignty.Our friend Ndongo Samba Sylla, a Senegalese development economist, talks to Steve about the situation, how it came to be, and how it can be overcome.Countries of the Global South usually are tied to debt in a foreign currency for a number of reasons, including balance of payment constraints and the capture of export income by transnational corporations. Some debt was carried over from colonial rule. Ndongo emphasizes that these countries are often trapped in an extractive economic model. Their resources are exploited by foreign companies, leading to a cycle of debt and dependence.Debt cancellation, while absolutely necessary, is not enough to address the structural issues that perpetuate the crisis. Ndongo mentions ecological debt — the extraction and exploitation of natural resources from the Global South by the Global North.