In a stark revelation, a recent UNESCO report has highlighted the troubling trend of developing countries prioritising debt repayments over educational spending, with alarming implications for the future of children’s education. In 2025, 113 nations were found to have allocated more resources to servicing foreign debt than to educational advancement, with sub-Saharan Africa demonstrating the most severe disparity, spending a staggering 3.6 times more on debt than on education.
Alarming Trends in Educational Funding
As the global landscape for education funding shifts, the situation appears dire. The report indicates that low- and lower-middle-income countries are enduring significant cuts in educational aid, with an estimated reduction of 21% experienced in 2023. Projections suggest that this figure could plummet to as much as 30% by 2027, further jeopardising the educational prospects of millions. Countries such as Afghanistan, Mali, Niger, and Liberia have already faced staggering losses exceeding 40% in just three years.
Min Jeong Kim, the director of UNESCO’s education division, remarked on the cyclical nature of this crisis, stating, “Current approaches really keep the countries trapped in a cycle of austerity, underinvestment and stalled development.” This cycle not only hampers economic growth but also erodes the ability of nations to mobilise domestic revenue, ultimately diminishing their capacity to address their debt burdens.
The Debt-Education Paradox
Among the most heavily indebted nations, the discrepancy is particularly stark. Eighteen countries were reported to have spent five times more on debt repayment than on education, with Sri Lanka’s situation being particularly egregious, where debt servicing consumed up to 16 times the educational budget. According to Debt Justice, a UK-based advocacy group, the repayments from poorer nations hit a 35-year peak last year, with 56 countries dedicating nearly a fifth of their total revenue to servicing loans.
Tim Jones, the policy director at Debt Justice, emphasised the multifaceted challenges facing these nations: “Countries’ debt payments have ballooned following a series of shocks from Covid, rising energy prices, interest rate hikes, and climate disasters.” The cumulative effect of these pressures is leading to severe cuts in essential services, including education and healthcare, which are crucial for the development of these nations.
Consequences of Aid Reductions
The aid cuts from Western nations, particularly the United States and Europe, have compounded these challenges. The education sector alone saw a reduction in funding by $600 million (£470 million) in 2024, with expectations of further declines in 2025. This shift in funding priorities has resulted in systemic disruptions within educational frameworks, leaving many schools underfunded and teachers unpaid.
UNESCO has raised alarms about the long-term ramifications of these trends. A weakened educational system not only hinders immediate learning opportunities for children but also stifles economic development, leaving indebted countries ill-equipped to manage their financial obligations in the future.
Rethinking Debt Relief Strategies
To address these pressing issues, UNESCO advocates for a fundamental rethinking of debt relief strategies. The focus needs to shift from short-term fixes to long-term solutions that allow governments to adequately fund public services, including education. Tim Jones underscored the importance of incorporating changes into English law to prevent private lenders from obstructing debt relief efforts, as seen recently in Ethiopia.
As the UK prepares to assume the presidency of the G20 in 2027, Jones called for a systematic overhaul of the debt-relief process, advocating for increased debt cancellation and expedited procedures. “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.
Why it Matters
The implications of these findings extend far beyond immediate educational outcomes. The continued prioritisation of debt repayment over education threatens not only the individual futures of countless children but also the broader economic stability of nations reliant on a well-educated populace. As we witness these trends unfold, it is imperative for global stakeholders to recognise the importance of educational investment as a cornerstone for sustainable development, ensuring that future generations are equipped to break free from the cycles of debt and poverty that currently entrap them.
