World Bank and IMF suggested methodology for assessing debt sustainability. I want to know whether, there are other methodological approaches for assessing debt sustainability.
It appears that the international institutions had tried debt-restructuring for many underdeveloped countries. Yet debt-forgiveness was a favored strategy by those countries. Some politicians in those countries even used it in their platform for re-election.
It seems that serious analysis should use the Weighted Average Costs of Capital, which pits debt against equity for investments. Firms are willing to participate internationally if countries will create more diverse economic opportunities for them than they could experience locally, thereby allowing them to lower their average investment costs. Then as a country grows by attracting foreign investments they will be better able to sustain their debt. The older growth model of saving and investing seems too slow for this age of information. I would say that older development model that emphasized export or infrastructure seems to fall in the same slow category of methods for growth.