DISCRETE ELEMENTS OF PUBLIC INDEBTEDNESS PLANNING

RRSS 2016 No.10 - Romanian Review of Social Sciences

1. Authors:
     • Popeangă Petre, Bragadireanu Carmen

2. Keywords: sustainable development, public debt, developing countries

3. Abstract:
   The sustainable development concept was born 30 years ago, and it was defined as a program of actions developed worldwide, whose aim is to implement the targets of meeting the actual needs of people, without compromising the approach of future generations in the achievement of their own development programs.
   
   But in order to implement this grand transnational program, all participant States have to make additional efforts, a situation that requires to analyse the risks associated with the entire process, in order to scale the efforts so as not to affect their national public budgets in a destructive way.
   \r\nFor this, the United Nations Organisation, through its specialised structure, UNCTAD, has organised the 10th Conference, whose main aim was to analyse the level and evolution of the public debt for the States participating in this process.
   
   Before committing to this program that was initiated after 2015, the international community concluded that it was necessary to dimension the funding of the set of "sustainable development goals" so that, as stated, not to affect significantly the future debt of the participating States, particularly the developing ones, debt that should remain within sustainable parameters throughout the approach.
   \r\nOther international activities have also been reviewed, activities that were adjacent to the program and which could affect its funding possibilities.
   \r\nAmong the most significant were mentioned the need to normalize the interest in developed countries, in order to maintain the incidence on public debt increase in developing countries within sustainable limits, the repercussions of price fall for basic products on the viability of debt of exporters for these products and, not least, the risks and benefits of developing countries’ access to the international capital market.
   \r\nHowever, simultaneously with these elements of international strategy, the public debt managers have to develop effective management actions, at the level of governments of participating States, so that the task of refunding the loans contracted now would not affect the achievement of future generations projects, situation that would be contrary to the ideas of sustainable development and, consequently, would create a moral problem, brilliantly set forth by the American economist Henry Kaufman, Ph. D in banking and finance, who said ... "no one knew how to explain, neither to taxpayers nor to their elected representatives, why the loan today must diminish the ability of future generations to develop their own programs."
   
   Considering all this, we will present below some elements necessary to streamline the public debt process, especially during the programming phase of setting the loan requirement.

download file