The rising global debt has become an issue that is crucial to be addressed. The debt itself is not a good sign of a healthy economy. it just not only damages the current state of economies but it can infect the future of the economy with the same problems as today.
The increasing global debt is an indicator of slow growth and uneven development. The matter of uneven development here is highly applicable to poor countries like Africa, Pakistan, Sudan, Bangladesh, etc. The burden of past debt is still there on the current government which is kind of making them helpless to do something about the issue of economic, political and social growth.
The ongoing uneven development is also a reason why high global debt is repeating itself. Underdeveloped countries rely on loans for the fulfillment of their national needs and because of poor technology these countries couldn’t compete in the international markets. In this way, international financial institutions and rich countries rule the poor ones because of the factor of dependency.
The modern monetary policies are ignoring the risk of rising global debt because governments find relief in printing more money in order to escape the worst economic periods. Such policies can work as a fueling factor of global debt.