Debt repayments are surpassing education investment.
A new UNESCO report reveals that 113 developing countries spent more on servicing foreign debt than on education in 2025, highlighting the growing financial pressure facing low- and middle-income nations. In sub-Saharan Africa, governments allocated 3.6 times more resources to debt payments than to education, while 18 of the most indebted countries spent at least five times more on debt servicing, with Sri Lanka spending up to 16 times more.
Declining aid deepens the education crisis.
The report also warns that shrinking international assistance is worsening the situation. Low- and lower-middle-income countries have already lost 21% of education aid since 2023, and funding could decline by up to 30% by 2027. Countries such as Afghanistan, Mali, Niger, and Liberia have already experienced reductions of more than 40% over the past three years. At the same time, global aid cuts—particularly from the United States and Europe—reduced education funding by US$600 million in 2024, leaving schools underfunded and many teachers without pay.
UNESCO calls for long-term debt reform.
UNESCO argues that current debt management policies trap countries in a cycle of austerity, preventing them from investing in education and other essential public services. The organization calls for long-term debt relief mechanisms that allow governments to continue financing education while meeting their financial obligations. Advocacy groups also urge reforms that prevent private creditors from delaying debt relief agreements, emphasizing that sustainable debt solutions are essential for protecting education systems and supporting future economic development.
Reference
Ahmed, K. (2026, July 10). Developing countries spend more repaying foreign debt than on education, UN reveals. The Guardian. https://www.theguardian.com/global-development/2026/jul/10/developing-countries-spend-more-foreign-debt-education-aid-cuts-unesco