Economics
Jun 4, 2026
Moussa Faki Mahamat
Once again, a global crisis is disproportionately burdening countries that did not cause it. Across the Global South, the food- and energy-price shock triggered by the conflict in the Middle East has morphed into a debt shock that demands an urgent international response.
N’DJAMENA—As everyone knows, the war in the Middle East has caused a sharp spike in oil, gas, and food prices, creating severe economic hardship worldwide, and especially in developing countries. But less well understood is the war’s effect on government borrowing costs. Across the Global South, what began as a price shock has morphed into a debt shock.
