How a Novel Solution in Global Development Came To Life

<p>Some of the most heavily indebted countries in the world are also the ones most vulnerable to climate-induced natural disasters. When a hurricane, cyclone, or massive drought hits a country, officials can be faced with the choice of either servicing their debts or paying for disaster recovery. As the pace and scale of natural disasters increase due to climate change, some policy entrepreneurs have introduced the idea of including so-called "Pause clauses" in loan agreements that would enable the country to suspend debt payments for a period of time as it recovers from a natural disaster. The best-known champion...