A new report by the United Nations Conference on Trade and Development (Unctad) highlights the shift from granting official development assistance (ODA) to providing loans by rich countries and organizations. Titled ‘A World of Debt,’ the report reveals that the percentage of ODA given as loans has increased by over six percent since 2012, burdening African countries with a growing debt crisis.
Developing countries are now spending more on debt interest payments than on vital sectors like health and education. The exponential growth in global debt, especially in developing countries, has led to a debt-to-GDP ratio of over 60 percent in Africa, double from 2010. This increase in debt servicing costs has hindered these countries from investing in crucial areas, impacting citizens’ well-being.
With African countries spending more on interest payments than on healthcare, the report emphasizes the urgent need to address the debt crisis to prioritize essential services for their citizens.
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