Chapter 4 | Page 166 these investments in human and physical assets must be seen as positive contributions to the realisation of human rights.121 Another key factor which influences the ability of States to protect human rights, particularly ESC rights such as an adequate standard of living, is the amount of liquidity in global financial markets,122 which impacts the ability of the State to borrow. Given these challenges in debt management, States must look to developing a more diverse borrowing and bond portfolio, including GDP-indexed bonds, as well as establishing macro markets to help manage bonds-based debt more effectively. Such arrangements enable bonds to be indexed to key macroeconomic aggregates and allow bond-holders to hedge against risks of market volatility.123 For such hedging to be effective, States need to extend their bond instruments to the global financial market. For many developing States, however, these policy options are extremely difficult to implement due to limited capacity and associated risks. Multinational mechanisms, such as the Joint World Bank–IMF Debt Sustainability Framework for Low-Income Countries (DSF), help guide donors and recipients to manage debt transactions without creating excess burden on borrowers. For example, the DSF pays attention to the way lending and borrowing decisions are made, including matching financial needs with the current and future ability of the borrower to pay, based on economic circumstances and projected debt burden.124 The recently revised DSF also includes further indicators of the ability of the borrowers to repay their external debt obligations, including the level of capital flow and remittances from 121 Balakrishnan et al, above n 53, 17. Discussions on debt forgiveness (HIPC, Paris Club), AID for Debt programmes and similar aspects of debt management in partnership with international community are presented in Chapter 5, in the context of international assistance and cooperation. 122 Dowell-Jones and Kinley, above n 69, 186. 123 See, Inge Kaul and Pedro Conceição, 'The Changes Under Way: Financing Global Challenges Through International Cooperation Behind and Beyond Borders' in Inge Kaul and Pedro Conceição (eds), The New Public Finance: Responding to Global Challenges (The United Nations Development Programme, New York, 2006) 26. 124 International Monetary Fund, The Joint World Bank–IMF Debt Sustainability Framework for Low-Income Countries (15 April 2015) <https://www.imf.org/external/np/ exr/facts/jdsf.htm>.