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Developing countries spent more on foreign debt than education in 2025
A Unesco report found that 113 developing countries spent more on debt servicing than on education last year. Low- and lower-middle-income countries also lost 21 percent of education aid received in 2023, with further cuts projected through 2027.
Jul 10, 3:00 AM·1m read1 source
The GuardianAudio version
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Most developing countries spent less on education than on repaying foreign debt in 2025, according to a Unesco report. Eighteen of the most indebted countries spent five times as much on debt as on education, and Sri Lanka spent up to 16 times more. The findings coincide with a projected decline in global aid to education of up to 30 percent by 2027.
Aid reductions and spending shifts Low- and lower-middle-income countries have already lost 21 percent of the education aid they received in 2023. Afghanistan, Mali, Niger, and Liberia each lost more than 40 percent of such aid over three years. Funding from the U.S. and Europe fell by $600 million in 2024, the most recent recorded figures.
The report links the combination of higher debt payments and reduced aid to disruptions in school operations and teacher compensation. Unesco called for debt-relief arrangements that extend beyond short-term measures and allow continued public-service funding.
A UK-based campaign group, Debt Justice, reported that repayments by poorer countries reached a 35-year high in 2025, with 56 countries directing nearly one-fifth of government revenue to loan servicing. The group attributed the rise to shocks including the pandemic, energy-price increases, interest-rate changes, and climate events.
