What's Happening?
A recent report by UNESCO reveals that developing countries are spending significantly more on repaying foreign debt than on education. In 2025, 113 developing countries allocated more funds to debt servicing than to education, with sub-Saharan Africa
spending 3.6 times more on debt. The report highlights that low- and lower-middle-income countries have already lost 21% of their education aid since 2023, with potential losses reaching 30% by 2027. Countries like Afghanistan, Mali, Niger, and Liberia have seen over 40% reductions in aid over three years. The situation is exacerbated by aid cuts from the US and Europe, which reduced education funding by $600 million in 2024. The report calls for a restructuring of debt relief to allow countries to maintain public service funding.
Why It's Important?
The findings underscore a critical challenge for developing nations: balancing debt repayment with essential public services like education. The disproportionate spending on debt over education could hinder economic growth and development, trapping countries in cycles of austerity and underinvestment. This situation not only affects the immediate educational opportunities for children but also the long-term economic prospects of these nations. The report suggests that without restructuring debt relief, these countries may struggle to improve their economic standing and manage future debt burdens effectively.
What's Next?
UNESCO advocates for a shift in debt relief strategies towards long-term solutions that enable continued investment in public services. The report also highlights the need for international cooperation to prevent private lenders from blocking debt relief agreements. The UK, holding the G20 presidency in 2027, is urged to push for significant changes in the debt-relief process, including more debt cancellation and faster procedures. These changes are crucial to prevent further disruption in education systems and to support sustainable development in indebted countries.
