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A recent report from UNESCO has unveiled a troubling trend in the financial priorities of developing nations, where spending on debt repayment has eclipsed investment in education. In 2025, over 113 countries allocated more resources to servicing foreign debts than to their educational systems, with nations in sub-Saharan Africa notably spending 3.6 times more on debt than on education. This alarming statistic comes at a time when global aid for education is anticipated to drop by as much as 30% in the coming years.
The Strain of Debt on Education
The findings highlight a critical point in the ongoing struggle for educational advancement within low- and middle-income countries. The report indicates that these nations have already experienced a 21% reduction in educational aid since 2023, with projections suggesting a further decline of up to 30% by 2027. Several countries, including Afghanistan, Mali, Niger, and Liberia, have been particularly hard hit, suffering losses exceeding 40% in education funding over the past three years.
Min Jeong Kim, director of UNESCO’s education division, expressed grave concerns about the current trajectory, stating, “Current approaches really keep the countries trapped in a cycle of austerity, underinvestment and stalled development.” This cycle not only undermines economic growth but also hampers the ability of these nations to raise domestic revenue and manage their debt effectively.
A Closer Look at the Numbers
The figures are stark: in the 18 most indebted countries, expenditures on debt servicing were found to be five times greater than those on education. Sri Lanka exemplifies the severity of this crisis, with debt repayments soaring to an astonishing 16 times its educational budget. According to Debt Justice, a UK-based advocacy group, repayments by poorer nations reached a peak not seen in 35 years, with 56 countries dedicating nearly 20% of their total revenue to loan servicing.
Tim Jones, policy director at Debt Justice, attributed this escalating crisis to a variety of factors, including the aftershocks of the COVID-19 pandemic, rising energy prices, and increasing interest rates, coupled with the impact of climate-related disasters. “In the worst-affected countries, this is leading to cuts in spending on essential services such as health and education,” he remarked.
Impact of Aid Cuts on Education Systems
The situation has been exacerbated by cuts in international aid, particularly from the United States and European nations. In 2024 alone, funding for education saw a decline of $600 million (£470 million), with expectations that the situation will worsen in 2025. This reduction has severely disrupted educational systems, leaving schools underfunded and teachers unpaid.
The implications of these funding cuts are far-reaching. A weakened education system not only hampers immediate learning opportunities for children but also stunts long-term economic development. Without a robust educational framework, countries will struggle to cultivate a skilled workforce capable of navigating future debt burdens.
A Call for Reform in Debt Relief Strategies
UNESCO advocates for a reevaluation of how debt relief is structured, urging a shift from short-term measures to long-term solutions that allow nations to maintain funding for public services. Jones emphasised the need for systemic change, particularly in the context of private lenders who often prioritise profit over the welfare of the countries they lend to. He called on the UK to leverage its G20 presidency in 2027 to implement significant reforms in the debt-relief process, including more comprehensive debt cancellations.
“Central to this is incorporating the process into English law, so that private creditors can no longer disrupt and hold out from the debt relief,” he stated, highlighting the necessity for a more equitable system that prioritises the needs of the borrowing nations over the financial interests of lenders.
Why it Matters
The findings of this report underscore a critical moment for the future of education in developing countries. With the trend of prioritising debt repayment over educational investment, the very foundations of economic growth and societal progress are at risk. As nations struggle under the weight of their financial obligations, the potential for a lost generation of learners looms large. The call for systemic reform in debt relief is not merely an economic imperative—it is a moral obligation to ensure that every child has access to the education they deserve, fostering a brighter future for all.
