Addressing the debt problem in today’s global economy, economists argue that the failing economic framework is contributing to an inequitable and unstable global economy. The outdated global financial architecture is ill-equipped to handle geopolitical conflicts and challenges posed by climate change. Developing countries face high levels of debt and slow growth, while funding for the IMF and World Bank lags behind. The involvement of China and private creditors adds to the complexity. A global governance structure is needed to adjudicate sovereign debt disputes, highlighting the proposal for an international bankruptcy law.