In a stark revelation, a recent report by UNESCO highlights the alarming trend of developing countries allocating significantly more resources to debt repayment than to education. In 2025, nations across sub-Saharan Africa spent over three times more on servicing foreign debt than on educating their children, raising serious concerns about the future of education and economic development in these regions.
The Financial Landscape
According to the UNESCO report, 113 developing countries spent more on debt than education last year. This situation is compounded by a projected decline in global aid to education, which could decrease by as much as 30% by 2027. Low- and middle-income nations have already witnessed a 21% reduction in educational aid since 2023, with some, including Afghanistan and Liberia, facing cuts exceeding 40% within a mere three years.
UNESCO’s education division director, Min Jeong Kim, expressed deep concern over the existing financial strategies that entrap countries in a cycle of austerity, which hinders economic growth and exacerbates their debt burdens. “This is really weakening countries’ stances on economic growth, eroding domestic revenue mobilisation and ultimately diminishing their ability to handle their debt over time,” Kim stated.
Disproportionate Spending
The report further reveals that 18 of the most heavily indebted nations are devoting five times the amount spent on education to debt repayment, with Sri Lanka’s ratio soaring to an astonishing 16 to 1. The UK-based advocacy group Debt Justice reported that repayments by poorer nations reached a 35-year high in 2025, with 56 countries allocating nearly 20% of their total revenue to servicing loans.
Tim Jones, the policy director at Debt Justice, noted that recent global shocks, including the COVID-19 pandemic and rising energy prices, have exacerbated the debt crisis. “In the worst-affected countries, this is leading to cuts in spending on essential services such as health and education,” he remarked.
The Impact of Aid Cuts
The situation has been further aggravated by substantial cuts in aid from both the United States and European nations, which saw a $600 million (£470 million) reduction in education funding in 2024. This decline is expected to persist, further straining educational infrastructures that are already struggling to survive. Many schools lack sufficient financing to operate effectively, resulting in teachers going unpaid and educational quality deteriorating.
The long-term implications of weakened education systems could be dire for indebted countries, stunting their economic development and impairing their ability to manage future debt obligations.
The Call for Reform
UNESCO advocates for a fundamental shift in how debt relief is structured. The focus should transition from short-term solutions to long-term arrangements that allow countries to maintain funding for public services, including education. Tim Jones emphasised the necessity of reforming the debt relief process, particularly to prevent private lenders from prioritising profit over the welfare of nations in need, as was recently observed in Ethiopia.
He urged the UK to leverage its presidency of the G20 in 2027 to implement significant changes to the debt-relief framework, advocating for increased debt cancellation and expedited processes. “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 added.
Why it Matters
This troubling trend of prioritising debt repayment over education not only jeopardises the immediate future of millions of children in developing countries but also casts a shadow over their long-term economic prospects. A generation deprived of quality education risks perpetuating a cycle of poverty and underdevelopment, ultimately undermining global stability and prosperity. Addressing this imbalance is critical not only for the affected nations but for the international community as a whole, as it seeks to foster a more equitable and sustainable global economy.
