Addis Ababa, Ethiopia — A concerning trend has emerged, as more than 50 low- and lower-middle-income nations are allocating a greater portion of their budgets to debt repayments than to education and healthcare. This critical situation is underscored by the UNESCO Global Education Monitoring (GEM) Report 2024/5, which estimates that underdeveloped and developing countries need to close an annual funding gap of nearly $97 billion to meet the Sustainable Development Goal 4 (SDG 4) by 2030.
In a stark revelation, UNESCO reports that in 113 developing countries, more funds are being allocated to service foreign debt than to education.
In 18 countries, this discrepancy is even more pronounced, with debt repayments being five times higher than education spending.
The situation is particularly dire in sub — Saharan Africa, where countries spent 3. 6 times more on debt than education last year.
The UNESCO GEM Report attributes the shortfall in education funding to a combination of macroeconomic limitations, debt cycles, demographic pressures, and systemic inefficiencies.
The Jubilee Report suggests that the global financial system is largely responsible for the debt crisis, which is siphoning vital resources from developing nations.
In response to this crisis, the World Bank and the International Monetary Fund (IMF) have been collaborating with developing countries to reduce debt burdens through initiatives like the Heavily Indebted Poor Countries (HIPC) Initiative.
However, the scale of the problem necessitates a more proactive and collaborative approach from the international community.
The UNESCO report calls for a shift in debt relief strategies, advocating for long — term arrangements that allow countries to continue funding public services. It also highlights the need for private lenders, often based in Britain and the US, to be prevented from blocking agreements to extract more profit, as has been the case with Ethiopia.
The path forward is clear but requires bold actions and a commitment from all stakeholders to prioritize the well — being of the world’s most vulnerable populations. By addressing the debt crisis and reallocating resources towards education and healthcare, developing nations can begin to bridge the “learning divide “and move closer to achieving the SDGs.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: The guardian
Source: Kaamil Ahmed
