Article

Structural Dilemma and Governance Solutions of International Financial Organizations in Developing Countries’ Debt Crisis Management a Social Network Perspective

Xinyan Xu^1,^*, Haocheng Yin²

¹School of International and Public Affairs, Shanghai Jiao Tong University, Shanghai, China.

²School of International Relations and Public Affairs, Shanghai International Studies, Shanghai, China.

^*Correspondence: Xinyuan Xu, E-mail: xxyolivia@sjtu.edu.cn

Received: 2025-05-31Revised: 2025-06-04Accepted: 2025-06-09Published: 2025-06-25

J. Int. Eco. Glo. Gov., 2025, 2(4), 81-101; https://doi.org/10.12414/jiegg.250614

Abstract:

Abstract: The frequent occurrence of global economic crises and the impact of the COVID-19 pandemic have led to a surge in the scale of debt in developing countries, a concentrated peak in debt repayment, and increased uncertainty in debt repayment capacity, and global debt governance faces severe challenges. The current global debt governance model [...] Read More.

Keywords: International Monetary Fund, Developing Countries, Sovereign Debt Crises, Social Network Perspective

Keywords: International Monetary Fund, Developing Countries, Sovereign Debt Crises, Social Network Perspective

Abstract

Abstract

The frequent occurrence of global economic crises and the impact of the COVID-19 pandemic have led to a surge in the scale of debt in developing countries, a concentrated peak in debt repayment, and increased uncertainty in debt repayment capacity, and global debt governance faces severe challenges. The current global debt governance model is similar to a complex network. The differentiation of interests and imbalance of weights between nodes in the network, the obstacles to the flow of resources at the edge layer, and the variable viscosity of the topological structure have resulted in flaws in the governance mechanism and increased the cost and difficulty of governance. In view of this, this paper innovatively uses network analysis to place the International Monetary Fund (IMF) in the international community network for empirical analysis to strengthen the theoretical understanding of debt governance. At present, the IMF plays a key but limited role in the debt governance of South Asian countries: at the node level, the conflict of interests between the IMF and the victimized developing countries and shareholders hinders the formation of governance consensus; at the edge level, the IMF's attention to the debt problems of developing countries lags behind, resulting in poor information flow and politicization of resource allocation; at the topological structure level, the instrumental attributes of the IMF and the simplification of governance measures have further damaged the governance effectiveness. Based on the above research, this article believes that promoting the reform of international organizations to adapt to the current economic situation, strengthening the positive interaction with various actors, and transcending the traditional concept of "others" are the inevitable ways to solve the governance dilemma. By promoting the continuous updating of the debt governance network, making it more reflective of the current political and economic situation, and more fair and effective, we can ensure global economic and financial stability and sustainable development.

Keywords: International Monetary Fund, Developing Countries, Sovereign Debt Crises, Social Network Perspective

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Funding

Funding

None.

Conflicts of Interest

Conflicts of Interest:

The authors declare that they have no conflicts of interest to report regarding the present study.

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