The Public Debt Crisis: Causes and Remedial Measures

Abstract

The public debt crisis constitutes one of the most significant economic challenges confronting states, particularly developing countries, including Libya. It is noteworthy that this issue has markedly escalated in recent years across the majority of countries worldwide, primarily as a result of unsound fiscal policies adopted by governments, in addition to the prevailing economic and political conditions they are experiencing. Such factors have led to an increase in the financial burdens imposed on governments, as well as on future generations. Inevitably, this situation entails substantial adverse repercussions on the national economy. Accordingly, this study aims to examine the public debt crisis by defining its concept, identifying its underlying causes, and proposing appropriate remedial measures. It further seeks to outline practical mechanisms for addressing this crisis and achieving an exit strategy with minimal losses.