Part 5

The Way Out

Seven disruptors to the cycle

The cycle is not inevitable

The Inheritance Trap is not inevitable. But breaking it requires more than responding once debt has become unsustainable or rebuilding after climate shocks have already caused damage. Action is needed at different points in the cycle: in how obligations are created, how future liabilities are prevented, how existing debt burdens are managed, what borrowing delivers, whether fiscal gains reach children, and how success is measured.

The seven disruptors below address these different pressure points. Together, they apply a principle of intergenerational fiscal equity: decisions taken today should consider not only the liabilities passed forward, but also the public, human and environmental value created for the children and future taxpayers who may ultimately bear their costs.

1

Address the ROOT CAUSES

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2

Invest in CLIMATE RESILIENCE

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3

Shift from LOANS TO GRANTS for adaptation and resilience finance

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4

EXPAND FISCAL SPACE with strategic debt solutions

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5

Create lasting PUBLIC VALUE

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6

Protect child investment

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7

Judge success by what happens to children

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NEXT

Part 6: Recommendations and Call to Action

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Banner Image: A farmer stands among crops and regenerated trees in Katete, Zambia, where communities are using Farmer Managed Natural Regeneration (FMNR) to restore degraded land. © 2024 Justin Njovu/ World Vision