how you teach your position, how you treat. okay. does society who speaks what does it go? whoever views, that's the remains the bishop. thank you so much for, for sharing this insights with us. re, as my, from the doc, a tribune. joining us to lie from the bundle the she capital. thank you. now a $171.00 bullying passenger planes. being grounded around the world after a cabin door blew out while an alaska airlines slides was in mid day. the boeing 737 max 9 had to make an emergency landing need. bunker has the details. c the intake distress cools and the pilots of alaska airlines flight 1282 to a traffic control, a large hole in the side of the craft, causing a dramatic dropping cabin pressure, exposing terrified passengers to the outside world. at 16000 feet,

maybe 5000 meters. it could be much, much worse. the seat next to the tool and fuselage was empty. deposit landing all a 171 passengers and 6 crew. safely back in portland, oregon. in response to alaska airlines that was temporarily grounding its fleet of 65. boeing mex 9 and across a plain often used on u. s. domestic flights, b o. d. a once again shining a spotlight on the boeing 737 max. after a catalogue of severe failure, as it's quite unprecedented and it should not be done play, that's for sure. because in modern co actuated nation, we do not see sections across the board. the fuselage coming separated from the rest of the across. i'm certainly not mid flight and this is an incredibly significant cause for concern because this, that crop is just a few months old us our space john boeing is still reeling from the ne,

a 2 year world wide grounding of o max age and max 9 planes up to 2 crashes in indonesia, an ethiopian code, 346 people. the following made several changes to the aircraft and the planes were allowed to return to service. but since then, max deliveries have been interrupted at times to fix manufacturing floors, including concerns about loops, bolts. investigators are now facing serious questions, how plain the lonely road of the assembly line a few months ago could end up like this. with a simulate head across use daily, around the world. oh, so risk need fall. okay. i'll just stay with us on al jazeera counting. the cost is next. the president biden says once a 2 state solution for palestinians and israelis,

what does anybody believe it's doable? what this is real for, i'm gonna say it back to us foreign policy and what are the long term consequences for the region and the world? a quizzical look at us politics, the bottom line. the next round, this is counter the goal is to announce, is there a way to look at the world of business? and this week the world is drowning in a rec, what amount of debt un rooms the crushing crisis is most prevalent in port developing nations. also this week africa spends more money on servicing depth and on educational health care is lead is demand to reform with a global financial system. plus on the brink of default,

the list of nations seeking debt restructuring is growing. there's to plain delay and really psych level data is hits a record $307.00 trillion dollars in 2023. and that includes the amount of money owed by corporations, governments and individuals right around the world. and it is equivalent to almost $40000.00 for every single person on the planet. multiple crises in recent years has worse than the problem, pushing country to the brink, and that simply means some of the poorest countries in the world servicing that that's instead of providing for that people. some city points, the 1000000000 people, almost off of humanity, leaving countries that spins model depth, interest payments, then on education or health us. and yet, because most of these and sustainable depths,

i've gotten that i do the import of countries, they are not judge to pose a systemic risk to the global financial system. disease. i mean, the city point, city 1000000000 people, is more than a systemic risk. it's a systemic failure. i'm trying to get there as well because with 19 percent that make the cost of living crisis, climate change. i need impacts of natural disasters have all contributed to the search in government borrowing. indeed, a report by the you in the global crisis response group says the world wide public debt reach $92.00 trillion us dollars last year. that's more than a 5 fold increase since the year 2000. as the result, borrowing as outpaced global g d p growth, which tripled over the same time. and most of the public debt crisis is concentrated in developing countries in the past decade as being an increase of the number of countries facing high levels of debt from 22 nations to 59. last year of

these $52.00 nations sol nights, 40 percent of the developing world are in serious debt trouble, according to the international monetary fund, countries lights for lanka gone. if you, if you unpack a stone, have already defaulted, or are likely to do, say, all countries mainly borrowed from the international monetary fund, all the world bank. i may repay the money with interest and when they called, they risk being cuts off from credit by international financial institutions or private investors. as a bro, again, they have to agree to a deal to restructure the debts and limit spending. and that's offering legislation on risk, for example, in 2010 greece is i am a bailout plan that included will start the measures was met with massive practice are let's take this on from london. joining me is greg swenson, a greg is the founding partner at the merchant bank of brick, my kind of break, welcome to counting the costs. so 1st up,

why has the weld reached this record amount of days? hey, nick, it's, there's a probably a bunch of contributing reasons, but i think the most obvious isn't just in the last few years where you've had 2 major issues. one is you had really reckless funding during and after the pandemic, even after many recoveries had any, many economies had recovered and they continued, especially here in the us, in the us and u. k. that continued with really exorbitant spending. and that's created a so much excess that from deficit spending the 2nd issue, especially in the us. but even here in the u. k, you have some excessive spending on green energy projects which don't actually contribute to productivity in the country. all it does is add to the balance sheet without contributing or creating more products for people to spend. so it's to, to buy. so it's basically inflationary button all done with deficit spending. so

those are the 2 major contributor contributors. and now the both developing and developed countries have to figure out how to pay it back. right. so obviously a big problem for pull developing nations, but what kind of issues does it grateful originations? it's kind of that, well, i mean, 1st of all, the richer nations traditionally have been able to carry that, especially in the us because it's the reserve currency and you're able to carry, continue with deficit spending and carry account deficits. but the less lower and lower income for developing countries don't have that luxury. so i think it has to start with the, with the larger economies, it has to start with the us and u. k. and western europe. but, but it has to ultimately a d o dependent somewhat on, on the developing kind of countries as well. so it's got to be both, but it's got to be lead with the larger economies rehired of you and talk you genuine kind of good parents talking about the risk of unsustainable debt. so what

kind of risk of that as well, yeah, but the most obvious is, is austerity if they can't service the debt. or if the i am a for world bank forces these developing countries to, to cut spending. and these are countries where the people are really dependent on food subsidies or even to direct food deliveries. so if you look at countries like there's 4 african for an age of the larger ones in africa and nigeria and kenya and in asia as the philippines. and pakistan high population countries where over 40 percent of income is spent on food. so if there is austerity, if there is inflation, which is basically a tax on these consumers. and they're already spending a considerable amount of their, their income on food that's going to lead to social in rest. we. we saw that 10 years ago, the arabs spring in north africa. we could very well see it again in these countries that are spent where the consumers, the people are spending, consider considerable amounts of their income and food. so he's got a point,

i think the developing countries are, or where the, the risk really is of social unrest due to us dirty on jets service. it won't happen in the larger economies. but it's really a shame because the, you know, some much of the borrowing has happened in the last few years without any real productive results from that borrowing. and so it's, it's a shame that, that many people are going to suffer in age and after it's sub saharan african. right. and so we have, does it, extraordinary crisis, but it, is it even manageable? i think it is. i think ultimately it is. you know, you're going to have some workouts, you're going to have some restructuring, restructurings. i think what really has to happen again, beginning with the bigger economies. the larger economies in the west is cutting spending and in the larger economies can do that. some of the developing economies have trouble cutting spending because it's, it's, it's food and health care and education for their economies that they're much more

dependent on government spending. but austerity in the west is different than austerity in the global south. so cut spending in the west. the 2nd is to liberate the supply side. then that's, there's been such hostility to the private sector. so which is in effect inflationary and ultimately creates more deficit spending and more overall debt level. so you know that the supply side has to be liberated. so there's that we have lower debt, we have lower rates, more products are produced. that brings down inflation. it also creates economic growth, which therefore, creates tax receipts or higher tax receipts. so the best way to, to pay back debt is deliberate, the private sector in, in both developing and developed economies. right. a given the interest payments that are often bigger than the overall spending on say helpful education. yeah. how feasible is it for, for lenders to pose that or even just to write it off? i think there's going to have to be some right offs we've. we saw that in sub

saharan africa and in the last few years, i think there's going to have to be some restructuring as you see it, even in eastern europe. and in small economies like montenegro, where you have large borrowings from the chinese of those, those debt service or interest payment holidays are ending. it's going to make it very difficult for smaller economy. so there has to be workouts, that's for sure. but i think we also have to consider that, you know, and again, in the larger economies, cut back on spending focus on creating economic growth that will create more tax receipts. there's a lot of talk about a reform of the global financial system. do you think that could happen? i think ultimately there has to be some reforms around the edges. i don't think there could be some major restructuring of the system. you know, you're, so you'll probably see less dependency on the us dollar with, you know, with oil trading and different currencies. you might see a shift to the global self as, as your population grows in sub saharan africa and asia and the middle east, north africa with very little popular ation growth and in the western europe as

well as in the united states. so, you know, there, there might be some shift based on movements of a people and a different population, different demographics. i think you also have to look at china and they have a major property problem. so this, the sub saharan african latin america are going to be less dependent and have to be less dependent on china because they just don't have the money to, to continue with the belt and road initiative. due to the fact that they've got debt problems at home. so i think that's something we all have to think about. right. oh, interesting stuff. great. good. appreciate that greg sprencel never much like next week. good to be here. well, of the $52.00 low and middle income countries, dealing with unsustainable debt 23 year in africa via became the 1st african country to the fulton itself in debt. and that was during the code 19 pandemic in 2020 china or is a significant credits of the countries infrastructure projects. loans with high

interest rates have restricted the government's ability to invest in social programs and infrastructure developments. but zambia has become a test case for potential defaults. as of the months of talks is lenders including china and the paris club agreed to restructure $6300000000.00 of them. these loans in june, southern african country will pay about $750000000.00 in the next decade. that is, instead of almost $6000000000.00 that was due before the debt restructuring, the nation is being negotiating. some of the deals with private credits is a new and report says, on average, african nations borrow at a cost $4.00 times higher than that for the united states. and 8 times higher than that for the wealthiest european economies or, or from gun as capital that chrome join. now by daniel evans i, i'm him, he's the lead consultants that many banks management and the chief economist at the policy initiative for economic development in africa. daniel, welcome. so 1st,

why all african countries trapped in this vicious cycle lived it very much in the uh, we just dropping in the network is been doing uh, maybe a whole historic or a, a dizzy didn't we use all. i was good to be a as the queues leasing the volumes either on to is the be so as a mover, i cannot make it, you know, me, the shopping, the resources you send it to the buyer. so you bought the, you such a way to get some more, i'm a to use the one that, you know, i forgot the really little bit of color thing to see any to buy product. so in it honestly the full vehicle,

the resort to it. so that's the motor that would be running a lot of tv. and now the reason is we do not have in the body to cancel legally. the savings is to be able to, i said the people, the color says the dental cv all the way. it doesn't need the full coverage, i'm guessing it was the or something, or the midship what they thought is wrong or what, what doesn't help is the high level, the massive levels of interest to me. i would really say it was the full time to live and not for the united states at 8 times high. the not for the wealth is european economies interest rates. how is that ever come to be? yes, it is quite difficult. and just like i said, you just, if you don't love the role that you be the movie,

like i said, when you needed a copy, the market is a blue middle, which is due by the variance within the model of the guy that this is within the going for the money and the to the discussion of mrs. low, the bottom was the guns to leave. you can speak to the i know the rest of the economy. some of the consumption, the resolution you don't need is and there is a wage. it's becoming the horses that there's a lot there. so while you needed the money at the local rate, you take this off mondays and then to the doctor when the,

in the recession, you know, other. so the nations have to service it. these massive rates of, of interest. how does that impacts their ability to develop sub leasing the bowman and the levels is why the higher on the news? because the money, the law, the rest of the, on the living, the citizens i used to say is this. uh for your patients, the vision in the who into our way. sure. the people from moment to all we minimize the use of is this also that higher point in the last uh, i gotta say a lot of the girls are not going to just

deliberate this. all the practice that got to be able to get that job and then the rest, and then that's what you need as far as it is. so the recreational center. hi, i'm talking about the most up because i don't, i don't know briefly what, what do you make of accusations against china that pushing african nations with that truck? yes, all the is very simple and realize that the result of deposition, because the law, the icon on the need are results immediately swell industrialization. so the model is less comfortable for god and it works like a salt. and in the show the we, we, we, we take all the law just give the right links to way particular recalls. the recall we were looking for the 3 b as in to get the same. most of the guys on

the new way. we know how to simulate model by the west, and then you get a lot of tv. i these china guys, you know, really gives you the model is that a lot of people are not as much as john uh, of this. and the reason i do not do a sure, okay, so that they have different results on the computer. i would love the continued the top is the best friday just upfront. uh, i need to, i need to change it to the delivery point is the you would be a slug at the microsoft or as long as as long as that uh, all right, daniel, appreciate that. thanks so much for joining us here on calendar. because this daniel, i'm gonna tell you, i'm thank of the developing countries. a chinese land is more than

a trillion dollars. that's according to research lab. 8 data and overdue 11 repayments, the soaring china has a much, is the largest label bilateral credit to in the past. decade it is in fact, catching up with the i m f and the world bank and is exceeding of the government says the official linda to the developing world. beijing has replace washington and bailing out low and middle income countries. well, china has led massive sums to several countries across asia, africa, and europe is part of its global infrastructure project, the belt and road initiative. but many nations are struggling to repay and face economic instability, and they're on the verge of collapse. the us blames beijing for pushing them to the bring china put the responsibility on us lead financial institutions. we're trying to has been reluctant to cancel large liabilities. owed by countries struggling to make ends meet. a data says that 80 percent of aging is lending portfolio in the

developing world is now supporting nations in debt distress. a china is also dealing with trillions of dollars owed by its own local governments, the financial affiliates, and real estate developers. well, joining me now in australia as i'm pleased to say here at the hearts it shows you there's a visiting fellow at the london school of economics and a senior practitioner fellow with the center at harvard kennedy school joining welcome at. so 1st up, what do you make of these accusations against china or chinese loans to developing countries that truck oh, those statistics who quoted make are compelling. however, i would say it is a bit misleading to call it a that trap for what china has gone to the developing world. china alone, so 20 percent of the debt to african. so solving nations, the other 80 percent are low in spite of multilateral institutions. in national financial entities, countries such as the united states, some you countries, turkey, india, japan, etc. so if you call the 20 percent, the china loan,

so africa, if that trap, then i wonder, what do you make off the other 80 percent that are collectively loans by oder entities to africa. china is long. the over trillion dollar situations to the developing world. many of them in the far reaching regions of the world, and many of them are run by liberal and the non democratic regina. and so overnight and political systems could change. we saw a wave of quotes in west africa. we saw political system change and now been as well. so none of these is an assurance to china in terms of the ownership guarantee or a loan guarantee, in terms of, you know, protecting china's overseas interest. so use of major strategic vulnerability for china. but when it comes to the debt relief, effort estimation says 2021. china, relieved to 23. i frequent country state and in 2022. china has successfully helped

gonna restructure. he's that good be turning those approaches work to try and china or is it the forefront of trying to do something about it? you recognize? it's not down to the west of lending institutions. it's a black, a chinese trying to do, or would con, and i should say that it is not out out of altruism either because it is indeed and tried his interest. that'd be so over a $140000000000.00 of debt to china. loans to africa does not go into default. however, i don't think we should use a plain game here because the reality is that africa in particular has been shot out of the global modernity. by not being offered sufficient to capital funding for the past 4 or 5 centuries. this is the moment where the west and china should join hands in providing massive capital infrastructure building to the roles and these, the developed nations. no country should be shot out of the world with modernity and economic prosperity for a matter, for lack of financing. of course,

china itself has its own law, so that program business. so how does it benefit from lending money to other nations at the scale? so if you look at the folder wrote a new should, if this is the times, here's the over the past decade, the china has really been escalating. it's a both the still mastic or capabilities as well it's, it's so expansion, office investment capacity globally. and so i think the investment within is you still must have capacity, and these overseas investment capability are coordinated. so at the beginning of the bought a road initiative for china has been building a lot of fiscal infrastructure. we always rhodes ports, etc. and of course, those are important because we thought the fiscal infrastructure, we cannot start to talk about trade jobs, growth or economic opportunities. and next, the china started to build additional infrastructure from somewhere in cable networks to a telecom, infrastructure base stations, cloud success. so thoughts are conducive to the rise of the additional economy in

these developing countries. and then after cold beer, we started to see china moving massively into green energy building social enterprises, public health care building, etc. so a lot of the investments in the public goods area is going to help the developing countries in now moving towards environmental, sustain, royalty, and economic sustained. and then as far as the episodes lines are concerned, isn't china now shifting from shifting to providing emergency rescue lives to countries as opposed to the infrastructure projects you're talking about? absolutely, i think that really goes with the natural development pattern. so from the sending global power, if you were to look at the united kingdom in the 19th century or the united states in the 20th century, all of these are rising pars. they started by exporting labor. and then these countries became the export of capital. subsequently, the export of technology and subsequently the ex border of global rules and norms and values that needs to choose since what we saw in the expenses to break summit

back in august. that is the start of china suffert's for the next the phase off ability multilateral institutions to finance the developing world for the default. or do you think the, the debt crisis as a whole faith in shall enter and outside china is manageable or is it a ticking time bomb? uh, uh, these are very complicated questions. uh, domestically speaking for china. the that issue is most of huge in the corporate sector and in the municipal government sector. so what the government is trying to do is to get to do stringent the due diligence, the order to build a firewall, to prevent the corporate financial stress from b, spelled over to the financial sector in order to prevent a systemic financial crisis. but try to does have a lot of fun levers, both in terms of monetary and fiscal policies in place, in the event of a severe economic calamity. and if we were to reflect on the 07,

the way to us centered to global financial crisis. the u. s has promised the 4 runs of 2. he's in order to provide a floor of liquidity to the financial system, trying to hasn't even begun to talk about your needs yet. so i think there are still a lot of policy room available to address some severe cataclysmic events in china will have to leave with the show. you great to have you in the studio head still, but it was thanks very much the thank you. thank you. well that's all show for this week. i did get in touch with us on that. excuse me, 9 is twitter. of course mic clocked out jobs and please do use the hash tag a c t c. when you do or just drops that email to the cost at out, is there a dot net is our address, but it won't be online at out 0 dot com slash ccc, and that will take me straight to our page, which has individual reports linked some entire episodes for you to catch up on that is it for this initiative?

kind of the cost on the clock, the whole team here and so i to join us to use on out 0 is coming up the the latest news as a spring. we would just hit pretty badly by tear gas that helped me serious complications on a weekly basis with detail coverage. this policy is making life so miserable for the palestinians that they eventually leave is effectively forcible transfer. and that's a whole crime. i'm fearless, jen, it isn't. it's totally dark. we're using our own life. this is the only way that they have life and can cook food and marry him shaheen. and i've been making films about since 2006. when i moved there in 2005, since we recovering from the 38, your occupation by israel,

people were hopeful that their lives would improve. their dreams have been destroyed. and all that remains on account of the last chapter dreams on l. g 0. the news really, drones strikes, kills fixed palestinians in janine city as night. e raids continue across the occupied westbank. the play you're watching l g 0 live from to have with me for the back. people also coming up the.