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Fiscal Space Policies for Sustainable Development and Debt Relief: Empirical Analysis in West African Countries

  • Amirreza Kazemikhasragh ORCID logo EMAIL logo and Marianna Vanessa Buoni Pineda ORCID logo
Published/Copyright: April 26, 2023
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Abstract

The uncertainty that the COVID-19 pandemic has brought demonstrates that income redistribution and traditional debt relief mechanisms are insufficient to meet public spending needs, mitigate external debt, and comply with the UN’s Sustainable Development Goals (SDGs), which aim to reduce multilateral debt to sustainable levels. Also, West African countries have focused their attention on the long-term fight against poverty and inequality and strengthening their social programs, especially in primary health care and macroeconomic stability. However, for more than a decade, the developing and least developed countries of West Africa have faced rapidly weakening macroeconomic conditions, combining several interrelated crises such as the sharp decline in oil prices, volatile financial markets and tourism disruptions, a global recession, the crisis of climate change, and shortages of food and energy, along with the economic contraction of COVID-19. Data from these countries show that health spending increases economic growth, minimizes infant mortality rates, and reduces debt. Furthermore, increasing government spending efficiency reduces the total debt and improves the health sector, in particular.


Corresponding author: Amirreza Kazemikhasragh, University Program of Studies on Asia and Africa (PUEAA), National Autonomous University of Mexico (UNAM), Mexico City, Mexico, E-mail:

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Received: 2021-09-14
Accepted: 2022-01-06
Published Online: 2023-04-26

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