Developing countries spend more repaying foreign debt than on education, UN reveals
A new UNESCO report reveals that 113 developing countries spent significantly more on servicing foreign debt than on education in 2025. Funding cuts are expected to worsen this trend, potentially trapping these nations in a cycle of austerity and stalled development.
Why it matters
The diversion of national budgets from education to debt repayment threatens the long-term economic growth and human capital development of the world's most vulnerable nations.
A school in Bolgatanga, Ghana. In sub-Saharan Africa, countries spent 3.6 times more on debt than education last year. Photograph: Unicef/Noorani A school in Bolgatanga, Ghana. In sub-Saharan Africa, countries spent 3.6 times more on debt than education last year. Photograph: Unicef/Noorani Aid cuts Global education Developing countries spend more repaying foreign debt than on education, UN reveals Unesco report shows children lost out to servicing debt in 113 countries, with 18 spending five times more on loans
About this content Kaamil Ahmed Fri 10 Jul 2026 03.00 EDT Last modified on Fri 10 Jul 2026 03.01 EDT Share Prefer the Guardian on Google Most developing countries spent less on education than they did repaying debt last year, according to the UN, at the same time as global aid to education is predicted to decline by up to 30%.
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