Debt and development finance

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.

Various money of African countries

Digital innovation for debt transparency: Strengthening public finances in Africa

In dozens of developing countries, digital innovation supported by UN Trade and Development is helping governments manage public debt more transparently, strengthening institutions and supporting long-term development planning.

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For further information on this topic, please contact us.

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