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Developing countries spend more on debt than education, UN report finds

Created at 10 Jul · 7:11 AM1 source↑ Market-relevant
IN SHORT

A UN report reveals that 113 developing countries spent more on servicing foreign debt than on education in 2025. This trend is exacerbated by declining global aid to education, with some nations facing significant cuts.

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Key Numbers

113developing countries spending more on debt than education
3.6 timesmore spent on debt than education in sub-Saharan Africa
30%predicted decline in global aid to education by 2027
40%aid to education lost by some countries in three years
$600 millioneducation funding cut by US and Europe in 2024
56countries spending almost a fifth of revenue on debt servicing
35-yearhigh for repayments by poorer countries

Who's Involved

Unesco
UN's culture and education agency that conducted the research
Min Jeong Kim
Director of Unesco’s education division
Debt Justice
UK-based campaign group providing debt repayment data
Tim Jones
Policy director at Debt Justice

↳ Why This Matters

The diversion of funds from education to debt servicing in developing nations jeopardizes long-term economic growth, hinders human capital development, and perpetuates cycles of poverty and underdevelopment, potentially leading to future financial instability.

Key facts

  • 113 developing countries spent more on foreign debt repayment than education in 2025.
  • Sub-Saharan African nations spent 3.6 times more on debt servicing than on education.
  • Global aid to education is projected to decline by up to 30% by 2027.
  • Some countries have experienced over 40% cuts in education aid over three years.
  • Repayments by poorer countries reached a 35-year high, with 56 countries dedicating nearly 20% of revenue to debt servicing.

A United Nations report indicates that a significant number of developing countries are prioritizing foreign debt repayment over education spending. In 2025, 113 nations spent more on servicing their debts than on educating their populations, with sub-Saharan African countries spending 3.6 times more on debt than education. This situation is compounded by a projected decline in global aid to education, which has already seen substantial cuts from the US and Europe. Low- and lower-middle-income countries are expected to lose up to 30% of their education aid by 2027, with some already experiencing over 40% reductions in three years. Experts warn that this cycle of austerity and underinvestment hinders economic growth and long-term development. The report calls for a restructuring of debt relief mechanisms to ensure continued funding for essential public services.

Frequently asked questions

According to Unesco research, 113 developing countries spent more on servicing foreign debt than on education in 2025.

High debt payments are leading to cuts in spending on essential services like health and education in the worst-affected countries.

Unesco suggests a shift from short-term debt relief to long-term arrangements that allow countries to continue funding public services.

What Happens Next

01The UK is expected to use its G20 presidency in 2027 to push for major changes to the debt-relief process.
02There are calls to incorporate debt relief processes into English law to prevent private creditors from disrupting agreements.

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How It Developed

More was spent on servicing foreign debt than on education in 113 developing countries in 2025.
In sub-Saharan Africa, countries spent 3.6 times more on debt than education.
Low- and lower-middle-income countries have lost 21% of aid to education since 2023.
Some countries have lost over 40% of education aid in three years.
Aid cuts from the US and Europe reduced education funding by $600 million in 2024.
Unesco called for a shift in debt relief structures to prioritize public services.
Debt Justice stated that 56 countries spent nearly a fifth of revenue on loan servicing.
Private lenders have been criticized for blocking debt relief agreements.

Sources

T1
Developing countries spend more repaying foreign debt than on education, UN revealsThe Guardian

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