This research paper by Stephen Mandel belongs to a three pillar approach to debt relief produced by the new economics foundation (nef)‘s Jubilee research program. The first component of this comprehensive set of integrated proposals has outlined a fair and transparent international arbitration process. This second paper defines the criteria by which this process would assess the level to which debts should be reduced. It takes as its starting point the amount of revenue that a government can be expected to raise without increasing poverty or compromising future development. With the assumption of an “ethical poverty line” of $3 per person a day, nef’s economists have calculated which would be required to reduce 136 countries’ debt to a sustainable level.
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Mandel, Stephen. 2006. Debt relief as if people mattered: A rights-based approach to debt sustainability. London: New Economics Foundation.