British economist and renowned debt justice advocate Ms Ann Pettifor has called for an urgent rebalancing of the international financial system to promote fairness and equity between creditor nations and debtor countries.
Speaking to journalists on the sidelines of the 9th Ghana International Trade and Finance Conference (GITFiC) meeting on the 2nd Global Debt Initiative, Ms Pettifor argued that existing global financial structures overwhelmingly favour creditors, enabling them to extract disproportionate value and resources from heavily indebted economies.
She explained that while domestic legal systems make provision for bankruptcy, allowing businesses to suspend debt repayment in the event of unforeseen crises no similar mechanisms exist at the international level.
“For example, if a warehouse burns down, you cannot expect the business to repay its debt,” she said. “But in international finance, no such protections exist. We need to rebalance the system so that the relationship between creditors and debtors is fairer. This applies both in the global economy and within our own countries.”
Ms Pettifor, a co-founder of the Jubilee 2000 Debt Cancellation Campaign, stressed that the current system entrenches creditor dominance, limiting the ability of debtor nations, especially in Africa, to pursue development priorities.
She urged African governments to adopt a more assertive posture in shaping their economic policies and shift away from overdependence on foreign creditors.
Rather than committing the bulk of national revenue to external debt servicing, she said countries should reinvest their own resources into key social sectors.
“The government of Ghana should feel free to determine its own policies and use more of its internal income to invest in health, education and welfare, instead of prioritising the interests of foreign creditors,” she added.
Ms Pettifor also highlighted youth unemployment as one of Africa’s most pressing challenges, criticising the global financial system for channelling vast resources into lending rather than development.
“It is astonishing how much money circulates in the international system, yet so little is invested in young people,” she said. “Governments continue borrowing and end up repaying twice as much, leaving limited resources for job creation.”
She recommended that Ghana mobilise more domestic funds supported by the central bank and national savings to expand opportunities for young people and strengthen future economic resilience.
Ms Pettifor further commended the Government of Ghana, particularly the Ministry of Finance, for producing what she described as an “excellent” report on the country’s debt restructuring efforts, urging other nations to learn from Ghana’s approach.
