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The document argues that major private credit rating agencies (CRAs) employ subjective, biased, and procyclical methodologies that unfairly increase the cost of capital for African nations. This 'credit rating impasse' hinders debt restructuring, limits the capacity of regional development banks, and obstructs the deployment of climate finance. To counter this, the African Union has endorsed the creation of the Africa Credit Rating Agency (AfCRA) in Mauritius. The brief recommends that African states improve data transparency, enhance debt management capacity, and maintain macroeconomic stability to challenge inaccurate ratings and reduce borrowing costs.

The document analyzes the 2026 review of the IMF and World Bank's Low-Income Country Debt Sustainability Framework (LIC-DSF). While acknowledging improvements in domestic debt treatment and country heterogeneity, it argues that the framework fails to conceptually separate public debt sustainability from external sustainability. The authors recommend a 'two-instrument approach' where the LIC-DSF serves as a public DSA and is complemented by a dedicated external DSA to better inform borrowing, fiscal rules, and debt restructuring decisions.

The document analyzes fossil fuel subsidies in Brazil and Colombia, advocating for the creation of national inventories and a prioritized reform roadmap. It highlights the inefficiency of certain production subsidies, such as Brazil's REPETRO, and suggests redirecting savings toward renewable energy and social equity. Using regional examples, it warns against abrupt reforms, as seen in Bolivia, and recommends progressive, well-communicated strategies similar to those in Ecuador.

The Institute for Economic Justice criticizes the South African government for prioritizing fiscal restraint over human wellbeing, specifically citing the removal of 35,000 people from social grants to achieve savings. The statement calls for the transition of the Social Relief of Distress (SRD) grant into a permanent, non-means-tested universal basic income set at or above the food poverty line to protect vulnerable populations from rising food costs and economic instability.

The document argues for a global debt restructuring mechanism to replace the voluntary and often delayed processes of current frameworks. It suggests that such a mechanism should be housed closer to debtor nations, be linked to the African Union (AU) and African financial institutions, and be grounded in principles of fiscal legitimacy and human rights. To overcome political resistance, the brief recommends that African states form a 'Debtors Club' and transition to the African Credit Rating Agency to reduce reliance on unregulated US-based agencies.

The briefing outlines five strategic pillars to integrate health into the climate and energy transition agendas for COP 31. These include shifting from a narrow energy transition to a systemic transformation, centering health as a primary result of the transition rather than a co-benefit, accounting for the full fossil fuel value chain (including petrochemicals), aligning fiscal policy with health costs, and closing evidence and communication gaps.

The report argues that African governments must rely on social grants and employment schemes to support populations not absorbed by the economy. It highlights South Africa's expansive but potentially unsustainable grant system and the Expanded Public Works Programme. The text discusses the transition from conditional to universal grants and the use of biometric identification systems, like India's Aadhaar, to reduce corruption. A critical barrier identified is Africa's low tax-to-GDP ratio (16.5%), exacerbated by tax breaks for investors, which limits the funding available for these social protections.

The document argues that major private credit rating agencies (CRAs) employ subjective, biased, and procyclical methodologies that unfairly inflate the risk premiums for African nations. This 'credit rating impasse' increases the cost of capital, hinders debt restructuring, and obstructs the deployment of climate finance. To counter this, the author supports the African Union's endorsement of the Africa Credit Rating Agency (AfCRA) to be based in Mauritius. The brief recommends that African nations improve data transparency, build debt management capacity through partnerships with the IMF and AfDB, and implement legislative oversight via debt sustainability laws to improve their macroeconomic fundamentals and challenge inaccurate ratings.

The report finds that tax incentives are a primary feature of investment laws in EMDEs, often driven by investment promotion agencies (IPAs) with limited involvement from ministries of finance (MoFs). This institutional disconnect leads to fragmented governance, revenue losses, and increased exposure to investor-state dispute settlement (ISDS) claims. While some countries are moving toward centralizing incentives under unified legal frameworks, monitoring and evaluation mechanisms remain limited and disconnected from policy-making.

The report analyzes 105 national investment laws in EMDEs, finding that 67.6% explicitly provide incentives, with tax incentives being the most dominant. It highlights a systemic gap in coordination between Investment Promotion Agencies (IPAs), which typically lead the design and administration of these laws, and Ministries of Finance (MFs), which are often marginalized in the legal text. This fragmentation leads to risks of revenue loss, inefficient resource allocation, and exposure to Investor-State Dispute Settlement (ISDS) claims. The document notes a trend toward centralizing tax incentives into unified legal frameworks to improve transparency and fiscal discipline, as seen in Ghana and Honduras.

The IEJ argues that the 2026 Budget fails to reverse a decade of austerity, instead implementing further cuts to non-interest spending and underinvesting in infrastructure and social services. The report criticizes the National Treasury's reliance on private sector investment and 'trickle-down economics,' noting that projected growth of 1.8% is insufficient to keep pace with labour force growth. The IEJ proposes increasing revenue through a net wealth tax and redirecting tax breaks for high-income earners, while calling for the South African Reserve Bank (SARB) to provide concessional debt for strategic industries, including green industrialisation. Additionally, the document critiques the Targeted and Responsible Savings (TARS) initiative and the Gender Budget Statement for failing to address structural inequalities and food insecurity.

The Universal Basic Income Coalition (UBIC) argues that the 2026 Budget prioritises the wealthy and middle class over the vulnerable, leaving critical social grants like the Child Support Grant (CSG) and the Covid-19 Social Relief of Distress (SRD) grant below the food poverty line. The coalition specifically warns that National Treasury's Targeted and Responsible Savings (TARS) programme, which aims for R3 billion in savings through intensified grant reviews, is based on flawed assumptions about beneficiary fraud and risks excluding millions of eligible people due to SASSA's capacity constraints.

The document highlights a critical gap in investment governance: while international investment treaties have undergone significant reform, investor-state contracts remain largely marginalized and outdated. These contracts often contain stabilization clauses and tax incentives that restrict a state's regulatory space and can neutralize treaty-level safeguards. The brief also notes a rise in contract-based investor-state dispute settlement (ISDS), which is often more opaque than treaty-based arbitration. To address these risks, the authors recommend strengthening national institutional coordination, centralizing and assessing existing contracts, and developing national model contracts. Globally, they advocate for integrating contract reform into broader investment governance discussions and developing regional guidance to reduce negotiation asymmetries.

The 2026 National Budget is criticized for maintaining austerity measures, reducing non-interest spending by R5.2 billion in 2026/27, and failing to address chronic food insecurity and unemployment. The document highlights that real spending on public services, including education and healthcare, is declining, while tax relief is skewed toward higher-income earners. It further critiques the second Gender Budget Statement for being peripheral to fiscal decision-making and failing to address the structural vulnerabilities of female-headed households.

The document advocates for the introduction of wealth taxes in South Africa to combat inequality and fund socioeconomic rights. It challenges the notion that wealth taxes harm growth, arguing instead that redirecting wealth toward public spending can stimulate demand and investment. The brief recommends a combination of Financial Transaction Taxes (FTTs), increased dividend taxes, and a progressive net wealth tax, citing successful international examples from countries like France, Argentina, and Colombia.

The report analyzes India's energy subsidy landscape in FY 2025 and FY 2026, highlighting a significant imbalance where fossil fuel subsidies are three times higher than clean energy subsidies. It details the fiscal strain on state governments due to rising electricity subsidies and the vulnerability of the national budget to global LPG and crude oil price volatility caused by conflict in the Gulf. The analysis argues for a strategic shift from recurring fossil fuel subsidies to one-time capital investments in renewable energy, electric cooking, and electric mobility to enhance energy security and fiscal sustainability.

Laos has updated its Investment Promotion Law to reform the design and administration of tax incentives, moving away from overly generous and broad benefits that led to revenue leakage. With support from the IISD, the government introduced narrower eligibility criteria, capped incentive durations, and strengthened monitoring and screening processes to ensure investments align with sustainable development priorities and fiscal stability.

The policy brief assesses the macroeconomic, financial, and labor risks associated with Colombia's energy transition, particularly for five vulnerable departments. It warns that a disordered transition could lead to the loss of 448,000 jobs by 2035 and increased country risk. To mitigate this, the authors propose an integrated policy package comprising macro-fiscal-financial measures to lower capital costs, territorially differentiated labor protections, and a productive-territorial strategy focusing on 'lever sectors' like electric energy, efficient construction, and agroecology to create sustainable local employment.

The document argues that Universal Basic Income (UBI) in South Africa is a matter of justice rather than charity, asserting that it would unlock economic potential and provide a fairer social contract. It contends that UBI is more cost-effective and inclusive than targeted systems, which often suffer from high exclusion errors. The text suggests a UBI could start at the national food-poverty line of R796 per month or the food poverty line of R1 634 per month, with the latter having a gross cost of approximately R342 billion, though the net cost would be lower after tax returns and economic growth.

The author contends that while central bank independence must be protected from populist right-wing capture—citing attempts by Donald Trump in the US and leaders in Turkey and India—the current technocratic orthodoxy is failing. The text argues that the ECB's focus on price stability via interest rate hikes has been ineffective against 'cost-push' inflation and 'greedflation', and has actively hindered the green transition by increasing capital costs for renewables. To remedy this, the document proposes a 'whole-of-government approach' involving a coordination council and the definition of time-bound secondary objectives, such as 'green interest rate' policies, to align monetary policy with democratic goals without requiring treaty changes.