Developing countries face record-high public debt burdens, time for reform: UN Trade and Development
BATHINDA: Global public debt rose to $102 trillion in 2024. Developing countries accounted for nearly one third of that amount – $31 trillion – and paid a record $921 billion in interest, straining budgets and putting vital public services at risk.
In the latest edition of its 'A world of debt' report series, UN Trade and Development (UNCTAD) notes that public debt in developing countries has grown twice as fast as in richer nations since 2010.
Debt can be a powerful tool to finance infrastructure and improve lives. But when it becomes too large or too costly, it holds back economies and undermines development.
Countries – especially those in the developing world – urgently need more sustainable and affordable ways to finance the future.
Stark disparities and systemic inequalities: The report flags stark contrasts among developing regions, with Asia and Oceania holding 24% of global public debt, followed by Latin America and the Caribbean (5%), and Africa (2%).
Worldwide, public debt burdens vary significantly across countries, depending on the terms of financing and the types of creditors to which they can access.
Systemic inequalities in international financial systems are making things even more challenging.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Perdagangkan CFD Emas dengan Broker Tepercaya
IC Markets
Mendaftar
Undo
Since 2020, developing regions have been borrowing at rates two to four times higher than the United States, for example.
In 2023, developing countries paid $487 billion to lenders abroad. Half of these economies spent at least 6.5% of their export earnings to repay external public debt.
People pay the price: In 2023, developing countries paid $25 billion more to creditors than they received in fresh debt disbursements, leading to an overall net debt outflow for years in a row.
This negative trend is worsening, the report warns, as high interest rates, low global growth and rising uncertainty continue to strain public finances and make it harder to sustainably manage debt.
In 2024, developing nations paid $921 billion in net interest on public debt, up 10% from the previous year.
A record 61 developing economies spent at least 10% of their government revenues on interest payments, leaving less for critical areas like health, education and climate action.
Today, 3.4 billion people live in countries that spend more on interest than on health or education.
A call to action: Rising debt, falling investment and shrinking aid are among the biggest financing threats facing the world today and putting the Sustainable Development Goals further out of reach.
The UN's upcoming 4th International Conference on Financing for Development offers a once-in-a-decade opportunity to mobilize finance at scale and reform global financial rules to better serve people and the planet.
Ahead of the summit, UN Trade and Development highlights key actions needed: Making international economic governance more inclusive by giving developing countries a real voice in how global financial systems are run.
Improving access to liquidity in times of crisis, including greater use of Special Drawing Rights, temporary suspension of IMF surcharges, better access to emergency financing funding and stronger South-South financial cooperation.
Fixing the international debt system, by creating a fair and effective mechanism that goes beyond the limits of the current G20 Common Framework for Debt Treatment.
Providing more affordable finance and technical support, including delivering on aid and climate finance commitments, reforming multilateral development banks and helping countries manage debt more effectively.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
34 minutes ago
- Time of India
Only 30% of MahaRERA recovery warrants executed; Rs 527cr still to be recovered
Pune: MahaRERA's progress on recovery warrant has remained slow, with only 31% of cases executed. Despite state govt's directive to dispose of these cases within three months, merely Rs 233 crore has been recovered out of Rs 760 crore due in 1,212 cases across Maharashtra, officials told TOI on Saturday. The slow progress contradicts revenue minister Chandrakant Bawankule's assurance during the state budget session, where he emphasised speedy execution of MahaRERA's recovery warrant orders and clearing the backlog within three months. The recovery warrants are issued under Section 40(1) of the Real Estate (Regulation and Development) Act (RERA) against developers who neither complete projects nor refund homebuyers. Once issued by MahaRERA, these orders are forwarded to district collectors for action, including property attachment and recovery of dues. The districts of Mumbai Suburban, Pune and Thane continue to report the highest backlog of such pending cases. You Can Also Check: Pune AQI | Weather in Pune | Bank Holidays in Pune | Public Holidays in Pune "Though there was some improvement in execution rates, the scale of pendency remains significant. It requires more proactive coordination from revenue officials," said a senior MahaRERA official, adding that it was despite the appointment of additional collectors in multiple districts to expedite the execution of recovery warrants. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top 5 Dividend Stocks for May 2025 Seeking Alpha Read More Undo Further compounding delays are 172 complaints, involving Rs 157 crore, that are currently pending before the National Company Law Tribunal (NCLT), which handles cases related to insolvency and bankruptcy. These cases are in legal limbo, adding to the frustration of affected homebuyers, stated officials In a broader push for accountability, PM Narendra Modi had addressed the issue directly at the Pragati review meeting on May 29. Expressing dissatisfaction with the mere counting of "disposed" complaints, the PM questioned whether states genuinely ensured redressal. In response, Maharashtra chief secretary Sujata Saunik held a review meeting in the second week of June with collectorates across the state, directing officials to fast-track execution of recovery warrants and ensure accountability. Additional revenue officers have since been appointed to assist with enforcement. Senior citizen Arun Sheth, who has been waiting for over four years for action against a developer, said, "There's been no real movement on my case despite repeated follow-ups. It's just silence." Activists and consumer groups have also called for better monitoring tools. "MahaRERA should introduce a real-time dashboard like UP RERA's. There should be a clearly defined SOP and phase-wise targets, not just vague timelines," said activist R Prabhu. MahaRERA officials said the issue was likely to be raised in the upcoming legislative session. "It's important that revenue officials are able to give a concrete and time-bound plan for executing these orders," an official noted.
Time of India
an hour ago
- Time of India
Aries Daily Horoscope Today, June 29, 2025: Don't push too hard to prove your worth
You have been rushing lately, moving from one thing to another without stopping to feel the present. But today brings a subtle shift. The universe is telling you to slow down because a simple but important truth wants to reach you. It could be about a choice, a relationship, or even your inner self. You may not like silence, but that's where clarity waits. Be still, even for a moment. This day is not for fast results—it is for honest, grounded understanding. Aries Love Horoscope Today In matters of love, rushing may create distance instead of connection. If you're in a relationship, pause before reacting. A calm talk can bring surprising closeness. If you're single, don't rush to impress. Let your energy speak for itself. Today, love flows best when you're relaxed and listening. A small moment—a shared glance, a soft word—might mean more than grand expressions. Trust that you are enough just as you are. Let love meet you in your stillness, not your chase. Aries Career Horoscope Today Your career today benefits from thoughtful effort, not speed. If you've been trying to handle everything at once, stop and choose one task to give your full focus. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo A clear answer to a recent doubt may come when you're not forcing it. Maybe a missed detail or quiet opportunity becomes visible when you slow down. Don't push too hard to prove your worth. You'll find that others notice your quality when you work with calm, steady energy. Let the day unfold naturally. Aries Money Horoscope Today Financially, today asks you to check things without panic. Review your expenses, payments, and plans slowly. Don't make big moves just to escape discomfort. Breathe and be honest with yourself. If something needs fixing, you'll see it clearly only when your mind is quiet. There's no need to compare or feel behind. Make space to understand where your money is flowing and why. Small clarity can prevent bigger stress. Money likes calm attention, not rushed reactions. Be present with your resources. Aries Health Horoscope Today Your health may feel unsettled because your body is asking you to rest more than usual. Tiredness, tension, or headaches may be your body's way of saying 'pause.' Don't wait for exhaustion to force you. Today, gentle breathing, light meals, and avoiding overthinking will help your system balance. Focus on simplicity. Walk slowly. Eat slowly. Sleep with care. Discover everything about astrology at the Times of India , including daily horoscopes for Aries , Taurus , Gemini , Cancer , Leo , Virgo , Libra , Scorpio , Sagittarius , Capricorn , Aquarius , and Pisces .
Time of India
an hour ago
- Time of India
TCP clears housing, tourism projects without asking: Where is the water?
Panaji: In a state battling water scarcity across both urban and rural belts, the town and country planning (TCP) department continues to issue technical clearances for new housing and tourism projects on a daily basis without assessing a fundamental requirement—access to water. Rapid urbanisation, compounded by unchecked groundwater extraction and the burden of a swelling tourist population, has left Goa's already strained water infrastructure gasping for breath. But despite the growing crisis, government departments continue to function in silos. Clearances for towering housing colonies and luxury resorts are handed out without consultation with the public works department (PWD) or the water resources department (WRD), the very bodies tasked with ensuring that the state's citizens are not left parched. Nowhere is this more evident than in Panaji. The capital faces a current shortfall of 2 million litres per day (MLD) in its water supply—roughly the requirement for a ward the size of Mala. Yet, just weeks ago, the state greenlit a 587-room luxury resort at Miramar. When officials from the tourism department were asked about parking and water requirements at a Goa Tourism Board Meeting on May 28, the response was 'Not our headache. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Invertir con Cervecería Nacional CFD, si tienes 30 o más, puede alegrar tu cuenta bancaria Empieza a invertir Inscríbete ahora Undo ' Goa's daily production of treated drinking water stands at 695 MLD. The demand has already overshot this figure by 62 MLD. In Siolim alone, the shortfall touches 7 MLD—over half of the village's requirement. The mismatch is glaring, and it is growing. As per estimates, an urban household in Goa consumes around 170 litres of water per person per day. The deficit in Panaji alone could affect an entire residential zone. Across the state, PWD officials have expressed frustration over the pressure on the system. The 11 new water treatment plants under construction—costing Rs 1,023 crore and adding 248 MLD to the system—cannot keep pace with the construction licenses and technical clearances issued by the TCP. The state's demand is surging due to an estimated resident population of 19 lakh, alongside an annual tourist inflow of 1 crore. Since 2020, the PWD has rejected approvals for a mere 18 multi-dwelling projects—10 in North Goa and 8 in South—on grounds of inadequate infrastructure. The largest among them was a 679-unit project in Sancoale. Despite such rejections, there is no mechanism to halt the TCP from issuing technical clearances. 'Many projects come up without NoC from the PWD. There needs to be a legal provision where TCP must verify water availability before approval,' a senior PWD official said. He added that developers are now building on hill slopes with no existing pipelines and expect the government to fund the infrastructure. 'Why should public money be spent for someone choosing to build in an area without basic access?' the official asked. Until recently, there was no requirement for a water connection to obtain an occupancy certificate. This changed only last year, after pressure from the PWD. The department hopes the revised rule will compel developers to obtain water availability certificates in advance. But there is a catch. 'The govt collects infrastructure tax from builders but when the time comes to provide electricity and water connections, the departments give excuses. Developers are always under pressure to deliver as they know that the buyer will approach RERA for compensation if there is a delay. The panchayats and the departments know this and they use it for their gains,' said the managing director of a real estate firm. 'If a panchayat denies permission due to lack of water, the appeal lies with the Directorate of Panchayats, which often overrules the decision,' said a panchayat member from North Goa. He noted that rising FAR limits in villages—from 60% to 80%—and approvals by the Investment Promotion Board for large projects have weakened the panchayat's authority. Despite mounting evidence of scarcity, the TCP continues to approve mega projects—resorts, second homes, and gated colonies—without consulting departments responsible for ensuring infrastructure.
