Debt and development finance
Public debt can be a powerful tool for development, allowing governments to invest in their people and economies. But when debt grows too large or becomes too costly, it turns into a heavy burden.
This is especially for developing countries, whose public debt has grown twice as fast as that of advanced economies since 2010. They have also been borrowing at higher average rates than many advanced economies, making it harder to invest in schools, hospitals, infrastructure and other sectors critical for sustainable development.
Developing countries must not be forced to choose between servicing their debt or serving their people. There’s a pressing need to reform the international financial architecture to end the debt trap and unlock long-term investment and finance. We support countries in managing their public debt effectively.
Debt and development finance
Public debt can be a powerful tool for development, allowing governments to invest in their people and economies. But when debt grows too large or becomes too costly, it turns into a heavy burden.
This is especially for developing countries, whose public debt has grown twice as fast as that of advanced economies since 2010. They have also been borrowing at higher average rates than many advanced economies, making it harder to invest in schools, hospitals, infrastructure and other sectors critical for sustainable development.
Developing countries must not be forced to choose between servicing their debt or serving their people. There’s a pressing need to reform the international financial architecture to end the debt trap and unlock long-term investment and finance. We support countries in managing their public debt effectively.
What comes next: A push for development-centric finance
Turning ambition into action will require systemic reform of trade, investment and finance to meet today’s development challenges.
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- Debt and Debt Sustainability
- Responsible Sovereign Lending and Borrowing
- Sovereign Debt Restructuring
- Debt Management and Financial Analysis System
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- Climate Finance for Development
- Financing green and sustainable development in small island developing States
- Mobilising financial resources for development in the time of Covid-19
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