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.
Reforming global finance for climate-resilient development
Fixing the foundations of the global financial system is essential to overcome years of under-delivery, debt dependence and eroding trust.
News
Latest publications
Featured Series
External debt sustainability and development
Videos and podcasts
Related
Areas of work
- Debt and Debt Sustainability
- Responsible Sovereign Lending and Borrowing
- Sovereign Debt Restructuring
- Debt Management and Financial Analysis System
Projects
- 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
Programmes
Meetings
1 – 3 December 2025
Intergovernmental Group of Experts on Financing for Development, 9th session
Geneva, Switzerland23 October 2025
National dialogue on external financing and climate-resilient development
Moroni, Comoros20 October 2025
UNCTAD16 ministerial roundtable: Implementing the Sevilla Commitment on financing for development and establishing a borrowers' platform
Geneva, Switzerland8 October 2025
National dialogue on external financing and climate-resilient development
Praia, Cape Verde25 – 26 September 2025
Regional and national dialogues on external financing and climate-resilient development
Trinidad and TobagoDocuments
Secretary-General Statements
Contact
For further information on this topic, please contact us.
