This podcast episode discusses the ongoing debate between loans and grants for funding economic development in lower-income countries, particularly in the era of climate financing. It sheds light on the creative ways wealthy nations have funneled climate finance back into their own economies and examines the evolving nature of financing options. The episode highlights the importance of considering the terms and conditions of financial assistance and the burden that loans can impose on low-income countries with significant debt loads. It also explores the connections between limited fiscal space, hindered ambition in addressing climate action, and the intertwined debt and climate crises.
