Developing countries spent 3.6 times more on debt than education in 2025, UN report reveals

A recent report from the United Nations Educational, Scientific and Cultural Organization (Unesco) highlights a troubling trend: in 2025, developing countries allocated more funds to repaying foreign debt than to education, with sub-Saharan Africa spending 3.6 times more on debt servicing. This alarming statistic was revealed during a comprehensive analysis of financial allocations in 113 countries.

Debt Servicing Outpacing Education Funding

According to the Unesco report, many low- and lower-middle-income countries are experiencing severe financial strain. In comparison to the 2023 figures, these nations have already lost 21% of their education aid and could face a decline of up to 30% by 2027. This trend is exacerbated by a global aid landscape that is increasingly unfriendly to education funding.

Notably, some countries, including Afghanistan, Mali, Niger, and Liberia, have suffered more than 40% cuts in funding over the past three years. The situation is dire, as Min Jeong Kim, director of Unesco’s education division, remarks: “Current approaches really keep the countries trapped in a cycle of austerity, underinvestment and stalled development.”

Impact on Education Systems

The financial redirection towards debt servicing is disrupting educational systems, leading to insufficient funds for schools and unpaid teachers. The UK-based campaign group Debt Justice reported that repayments by poorer countries reached a 35-year high last year, with 56 countries spending nearly 20% of their total revenue on servicing loans.

Tim Jones, policy director at Debt Justice, noted, “Countries’ debt payments have ballooned following a series of shocks from Covid, energy price and interest rate rises and climate disasters.” These financial pressures are forcing nations to cut spending on essential services, including health and education.

Calls for Reformed Debt Relief Strategies

In light of these challenges, there is a growing call for a reevaluation of debt relief strategies. Unesco advocates for a shift from short-term relief to more sustainable long-term arrangements that allow countries to maintain funding for public services. Jones emphasized the need for the UK to leverage its presidency of the G20 in 2027 to push for significant changes in the debt-relief process, including enhanced debt cancellation and expedited measures.

“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,” Jones added, referencing recent issues where private lenders obstructed agreements aimed at alleviating debt burdens.

• Countries spending 5 times more on debt than education: 18 nations
• Countries with over 40% funding cuts: Afghanistan, Mali, Niger, Liberia
• Projected decline in education aid by 2027: up to 30%