Nations that swim against the red-ink tide

The world carried off a new yet not very noble feat this year. Total global debt – government, household, and corporate – hit a record $365 trillion. In the United States, federal debt has topped $40 trillion, about double from a decade ago. For the first time since World War II, the U.S. owes more to creditors than its economy produces in a year.Global debt levels are being pushed along “like a staircase not to heaven,” Kristalina Georgieva, managing director of the International Monetary Fund, told the BBC.The biggest borrowers are also some of the world’s largest economies. In announcing the $365 trillion figure on Wednesday, the Washington-based Institute of International Finance said wealthier countries now face the need to make changes similar with those already forced on debt-distressed, low-income nations after recent crises. Indeed, several lesser-developed countries, such as Jamaica and Costa Rica, are not only emerging economies but also emerging benchmarks in how to restrain red ink.They have achieved a mix of greater fiscal discipline, higher transparency in data, increased freedom for entrepreneurs, or more political inclusivity in reaching a consensus on spending and taxes.In a break from stereotypes, Africa is now home to many such success stories. “The region has weathered crisis after crisis – and has kept reforming,” said Abebe Selassie, director of the IMF’s African Department, in April. In South Africa, for example, the national debt has stabilized for the first time in nearly two decades, in part because voters have elected a centrist, unified government. The IMF also has lately praised Ghana for its reforms after enduring a debt default. Similar kudos have gone to Côte d’Ivoire, Morocco, Rwanda, and Burkina Faso.One sign of Africa’s progress is this: Many of its bond markets have been improving while those in wealthier nations have lately taken a beating.“The striking feature is that the same global backdrop pushing borrowing costs higher across major developed markets is coinciding with improving conditions for some less obvious borrowers,” wrote two Africa experts, Jana de Kluiver and Henry Gilfillan, for the Lowy Institute. Deepen your worldviewwith Monitor Highlights.Politics with respectGet political stories with respectful analysis.There‘s a world of new ideas in everyBooks newsletter.There‘s more to life, enrich yours withCulture & Learning weekly.Follow humanity‘s discoveries withScience & Nature stories in your inbox.Gain a spiritual perspectivefrom the stories in your inbox.Want to understand the deeper impact of critical events? Learn the Monitor‘s insight.Already a subscriber? Log in to hide ads. If Africa is now offering a few models for debt management learned because of one economic crisis after another, it is this: “Stronger domestic fundamentals can matter enough to offset a harsher external environment,” stated the two experts.Those more advanced countries driving the global debt crisis need not look far for a way out. ALREADY A SUBSCRIBER? LoginReal news can be honest, hopeful, credible, constructive.The Christian Science Monitor was founded in 1908 to lift the standard of journalism and uplift humanity. We aim to “speak the truth in love.” Our goal is not to tell you what to think, but to give you the essential knowledge and understanding to come to your own intelligent conclusions. Join us in this mission by subscribing.