universal debt relief for poorer countries. A less extreme measure is to permit civil society groups in every nation to buy the debt in exchange for minority equity positions in community organizations. Even in dictatorships, the combination of banks and civil society power could force land reform and overthrow unaccountable governments, since the people and banks would be aligned against the oppressive government.
Creditary economics and Islamic economics argue that any level of debt by any party simply represents a violent and coercive relationship that must end. As the existing system of public debt finance based on Bretton Woods is critical to the financial architecture, significant monetary reform would be required to realize this.
Using a debt to GDP ratio is one of the most accepted measures of assessing a nation’s debt. For example, one of the criteria of admission to the European Union’s Euro currency is that a country’s debt does not exceed 60% of that country’s GDP.
The idea that civil society groups could overthrow unaccountable governments is encouraging. We have the unaccountable government. Now all we need is the active civil society.