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	The world is extremely unequal by World Inequality Lab, Oxfam, agencies   Dec. 2025   The world is extremely unequal. (World Inequality Report 2026)   Inequality has long been a defining feature of the global economy, but by 2025, it has reached levels that demand urgent attention. The benefits of globalization and economic growth have flowed disproportionately to a small minority, while much of the world’s population still face difficulties in achieving stable livelihoods. These divides are not inevitable. They are the outcome of political and institutional choices.   This report draws on the World Inequality Database and new research to provide a comprehensive picture of inequality across income, wealth, gender, international finance, climate responsibility, taxation, and politics.   The findings are clear: inequality remains extreme and persistent; it manifests across multiple dimensions that intersect and reinforce one another; and it reshapes democracies, fragmenting coalitions and eroding political consensus. Yet the data also demonstrate that inequality can be reduced.   Policies such as redistributive transfers, progressive taxation, investment in human capital, and stronger labor rights have made a difference in some contexts. Proposals such as minimum wealth taxes on multi-millionaires illustrate the scale of resources that could be mobilized to finance education, health, and climate adaptation. Reducing inequality is not only about fairness but also essential for the resilience of economies, the stability of democracies, and the viability of our planet.   The first and most striking fact emerging from the data is that inequality remains at very high levels. Today, the top 10% of the global population’s income-earners earn more than the remaining 90%, while the poorest half of the global population captures less than 10% of the total global income. Wealth is even more concentrated: the top 10% own three-quarters of global wealth, while the bottom half holds only 2%.   The wealthiest 0.001% alone, fewer than 60,000 multi-millionaires, control today three times more wealth than half of humanity combined. This concentration is not only persistent, but it is also accelerating. Extreme wealth inequality is rapidly increasing. Since the 1990s, the wealth of billionaires and centi-millionaires has grown at approximately 8% annually, nearly twice the rate of growth experienced by the bottom half of the population.   Inequality is not only a question of income and wealth. It is also embedded in the structures of everyday life, shaping whose work is recognized, whose contributions are rewarded, and whose opportunities are constrained. Among the most persistent and pervasive divides is the gap between men and women.   Globally, women capture just over a quarter of total labor income, a share that has barely shifted since 1990. When analyzed by regions, in the Middle East & North Africa, women’s share is only 16%; in South & Southeast Asia it is 20%; in Sub-Saharan Africa, 28%; and in East Asia, 34%. Europe, North America & Oceania, as well as Russia & Central Asia, perform better, but women still capture only about 40% of labor income. Women continue to work more and earn less than men. Women work more hours than men, on average 53 hours per week compared to 43 for men, once domestic and care work is taken into account. Yet their work is consistently valued less.   Studying inequality across countries and over time reveals that policy can indeed reduce inequality. Progressive taxation and, especially, redistributive transfers can significantly reduce inequality. Taxation often fails where it is most needed: at the very top of the distribution. The ultra-rich escape taxation.   Effective income tax rates climb steadily for most of the population but fall sharply for billionaires and centi-millionaires. These elites pay proportionally less than most of the households that earn much lower incomes.   This regressive pattern deprives states of resources for essential investments in education, healthcare, and climate action. It also undermines fairness and social cohesion by decreasing trust in the tax system.   Progressive taxation is therefore crucial: it not only mobilizes revenues to finance public goods and reduce inequality, but also strengthens the legitimacy of fiscal systems by ensuring that those with the greatest means contribute their fair share.   Reducing inequality is a political choice. But fragmented electorates, underrepresentation of workers, and the outsized influence of wealth all work against the coalitions needed for reform. This reality can change. It reflects political choices about campaign finance rules, party strategies, and institutional design that can be reshaped with sufficient will. Inequality can be reduced. There are a range of policies that, in different ways, have proven effective in narrowing gaps.   One important avenue is through public investments in education and health. These are among the most powerful equalizers, yet access to these basic services remains uneven and stratified. Public investment in free, high-quality schools, universal healthcare, childcare, and nutrition programs can reduce early-life disparities and foster lifelong learning opportunities.   Another path is through redistributive programs. Cash transfers, pensions, unemployment benefits, and support for vulnerable households can directly shift resources from the top to the bottom of the distribution. Where well designed, such measures have narrowed income gaps, strengthened social cohesion, and provided buffers against shocks.   Progress can also come from advancing gender equality. Reducing gender gaps requires dismantling the structural barriers that shape how work is valued and distributed. Policies that recognize and redistribute unpaid care work, through affordable childcare, parental leave that includes fathers, and pension credits for caregivers, are essential to leveling the playing field. Equally important are the strict enforcement of equal pay and stronger protections against workplace discrimination. Addressing these imbalances ensures that opportunities and rewards are not determined by gender but by contribution and capability.   Tax policy is another powerful lever. Fairer tax systems, where those at the very top contribute at higher rates through progressive taxes, not only mobilize resources but also strengthen fiscal legitimacy. Even modest rates of a global minimum tax on billionaires and centi-millionaires could raise between 0.45% and 1.11% of global GDP and could finance transformative investments in education, healthcare, and climate adaptation.   Inequality can also be reduced by reforming the global financial system. Current arrangements allow advanced economies to borrow cheaply and secure steady inflows, while developing economies face costly liabilities and persistent outflows.   Inequality is a political choice. It is the result of our policies, institutions, and governance structures. The costs of escalating inequality are clear: widening divides, fragile democracies, and a climate crisis borne most heavily by those least responsible. But the possibilities of reform are equally clear. Where redistribution is strong, taxation is fair, and social investment is prioritized, inequality narrows.   The tools exist. The challenge is political will. The choices we make will determine whether the global economy continues down a path of extreme concentration or moves toward shared prosperity.   http://wir2026.wid.world/ http://wir2026.wid.world/insights/ http://wir2026.wid.world/insight/executive-summary http://wir2026.wid.world/medias/ http://www.theguardian.com/inequality/2025/dec/10/just-0001-hold-three-times-the-wealth-of-poorest-half-of-humanity-report-finds   Sep. 2025   Stand with Billions, Not Billionaires. Change the System. (Economic Justice Mobilisation)   We live in a critical moment in history. Humanity is confronted with massive economic and climate injustice, because the system is rigged — and we are all paying the price. This unjust economic system advantages rich countries to the detriment of poorer nations, fossil fuels over clean energy, and billionaire oligarchs over everyone else.   The super-rich and large corporations control the media, manipulate politicians and dodge taxes — increasing their political power and trapping billions of people in poverty.   While billionaires, big corporations and rich nations hoard wealth and power, climate disasters and crushing debt push billions deeper into poverty. The richest 1% pollute more than the poorest 66%, yet vulnerable communities bear the devastation — with floods, fires, and storms wiping out lives and livelihoods. The wealthiest countries owe an enormous debt for this damage, which impacts women, youth and marginalised groups the hardest.   At the same time, nearly one in three countries face a catastrophic debt crisis — the biggest in a generation. Instead of funding healthcare and schools, low-income countries are forced to pay billions to wealthy creditors, at crushing interest rates, while institutions like the IMF and World Bank impose brutal austerity. When public services fail, women and girls bear the heaviest burden, as they perform the bulk of unpaid care and domestic work.   At the heart of this injustice is an outdated global financial system that fuels inequality and the climate crisis. We must fight back — and there is a better way.   2025 is a Jubilee Year — a rare opportunity to cancel debts and start afresh. Let’s create a new financial system to prevent future debt crises, end austerity, create a progressive tax system and tackle climate change. We pledge to stand together and make our values and demands visible everywhere, so that every government feels the urgent pressure to act.   Here’s what we’re fighting for:   Cancel the Debt: End the debt crisis today by canceling unsustainable and illegitimate debts — no strings attached — and requiring rich countries to pay their climate debts to support communities on the frontlines of the climate crisis.   Change the System: Transform the outdated, rigged financial system with a fair, democratic and transparent one under the United Nations — including a binding debt framework and international tax convention. Everyone deserves a voice in shaping the future, not just a few billionaires.   Choose Hope and Justice: Debt cancellation cannot be done in isolation. To build just economies we must (a) tax the super-rich and large corporations to curb inequality, (b) guarantee public services including health care, education, and social protection for all, and (c) accelerate a just transition for people and planet, including a fair, equitable and timebound transition away from fossil fuels as well as the protection of biodiversity and community livelihoods.   But the clock is ticking. With only five years left to meet the Sustainable Development Goals, we're failing. At this rate, ending poverty will take 230 years—but the world's first trillionaire could emerge in less than a decade.   This is not a time to be defined by tyranny, oligarchy, exploitation, and greed. Instead, we are defined by our courage to fight for justice, our solidarity and a determination to build a just and equitable world. We can rewrite the rules. We can change the system. We choose Hope and Justice — for Billions, Not Billionaires.   * 1071 civil society organisations from 115 countries have signed the Economic Justice statement: http://economicjustice.global   * Joint Civil Society call urging President Ramaphosa to Confront Extreme Inequality at the G20: http://gi-escr.org/en/our-work/on-the-ground/joint-letter-urging-president-ramaphosa-to-confront-extreme-inequality-at-the-g20 http://gi-escr.org/en/our-work/on-the-ground/iachr-resolution-marks-a-step-forward-in-recognising-fiscal-policy-as-a-human-rights-issue-and-unpacking-actionable-legal-obligations   * G20 Committee of Independent Experts on Global Inequality Final Report:   http://ipdcolumbia.org/event/landmark-g20-report-led-by-nobel-laureate-joseph-stiglitz-sounds-alarm-on-inequality-emergency-and-calls-for-international-panel-on-inequality/ http://www.gov.za/sites/default/files/gcis_document/202511/g20-global-inequality-report-full-and-summary.pdf   Aug. 2025 (Oxfam International)   In reaction to the United Nations’ 2025 edition of “The State of Food Security and Nutrition in the World” (SOFI) report launched today, showing only a slight progress in reducing hunger and warning that over half a billion people could be chronically hungry by 2030—nearly 60% of them in Africa — Emily Farr, Oxfam’s Food and Economic Security Lead, said:    “We are witnessing the collapse of a moral contract. While some regions have seen some modest gains, the world is veering dangerously off track, leaving the poorest and more vulnerable behind. As top donors, including the G7, push through a historic 28% cut to aid by 2026, 2.6 billion people —over a third of humanity —still cannot afford a healthy diet. These are not just statistics. These are lives unravelling and futures stolen.   “This is not a crisis of scarcity — it is a crisis of inequality. Climate chaos, conflict unchecked, and broken policies—driven by greed and impunity—are tearing apart global food systems and entrenching inequality.   In 2024 alone, billionaires’ wealth soared by $2 trillion while poverty barely budged. Since 2015, the world’s richest 1% have amassed $33.9 trillion — enough to end global poverty 22 times over. Yet hunger persists, not by accident, but by design. As fields flood and crops wither, aid is slashed, and a few corporate giants profit from the wreckage.   Low-income countries are paying the highest price for a crisis they did not create. While global food price inflation peaked at 13.6 percent, it soared to 30 percent in the poorest economies— wiping out household budgets and access to food.   In Africa, 1 in 5 people remain chronically hungry, with women and children hit hardest by deep cuts in nutrition programs.   “We cannot afford a global food system built on injustice and indifference. Despite a modest improvement, we are nowhere the pace needed to meet global goals. The tide can still be turned, but only if governments act with urgency and unity: restore gutted aid, crack down on food profiteers, and invest in local farmers and local food systems that feed people, not profit margins.”   http://www.oxfam.org/en/press-releases/oxfam-reaction-sofi-2025-rep http://www.oxfam.org/en/press-releases/billionaire-wealth-jumps-three-times-faster-2025-highest-peak-ever http://www.oxfam.org/en/research/resisting-rule-rich   UNEQUAL: The rise of a new American oligarchy and the agenda we need   This past year has been indelibly shaped by concentrated wealth and power. The 10 richest U.S. billionaires got $698 billion wealthier, and the arrival of the world’s first trillionaire grew more imminent.   The Trump administration—largely with the support of the Republican-controlled Congress—has moved with staggering speed and scale to carry out a relentless attack on working-class families, while enriching the wealthy and well-connected.   How did the country get here? The story does not begin in 2025. Oxfam’s UNEQUAL provides a snapshot of U.S. economic inequality today, and looks at the trends in recent decades that have culminated in contemporary extremes that are corroding U.S. democracy and causing hardship for many millions of people.   The report examines the influence of concentrated wealth over politics, and how policymakers’ choices on tax, labor, social protection and other issues contributed to the growing divide between the very wealthiest and much of the country. It sounds the highest alarm about what comes next and sets out an agenda to turn the tide and reverse harmful inequality, calling on policymakers to back the demands of workers, movements, and communities to deliver for ordinary people.   http://policy-practice.oxfam.org/resources/unequal-the-rise-of-a-new-american-oligarchy-and-the-agenda-we-need-621764/ http://americansfortaxfairness.org/new-report-u-s-billionaires-got-1-5-trillion-richer-trumps-first-year/ http://americansfortaxfairness.org/groups-back-billionaires-income-tax/ http://itep.org/why-the-us-should-reform-corporate-income-tax/ http://www.cabillionairetax.org/ http://www.cabillionairetax.org/news/press-release-12-30-b http://www.cabillionairetax.org/news/press-release-12-30-a http://www.sanders.senate.gov/press-releases/news-sanders-and-khanna-introduce-legislation-to-tax-billionaire-wealth-and-invest-in-working-families/ http://robertreich.substack.com/p/a-wealth-tax-that-works http://www.markey.senate.gov/news/press-releases/senator-markey-colleagues-introduce-equal-tax-act-to-close-tax-loopholes-for-the-wealthy   http://www.hhrjournal.org/2025/05/20/a-tax-on-the-worlds-ultra-rich-to-fight-hunger-and-disease/ http://www.taxobservatory.eu/publication/a-blueprint-for-a-coordinated-minimum-effective-taxation-standard-for-ultra-high-net-worth-individuals/ http://clubmadrid.org/former-heads-state-government-call-president-biden-fellow-g20-leaders-back-global-deal-tax-ultra-rich/ http://www.taxobservatory.eu/publication/global-tax-evasion-report-2024/ http://www.warren.senate.gov/imo/media/doc/ultra-millionaire_tax_act_score.pdf http://www.brookings.edu/wp-content/uploads/2020/10/Saez-Zuchman-final-draft.pdf   The richest 3,600 Europeans now hold as much wealth as the poorest 181 million. (Oxfam)   In 2025, the EU counted nearly 500 billionaires, 39 more than in 2024. In the last year alone, a new billionaire was created, on average, every 9 days in the EU. Altogether, the richest 3,600 Europeans now hold as much wealth as the poorest 181 million – equivalent to the populations of Germany, Italy and Spain combined.   Europe faces a deep inequality crisis: the richest 1% in the EU own nearly a quarter of all wealth while half the population shares just 3%. Decades of tax cuts for the wealthy and corporations has resulted in the super-rich paying proportionally less taxes than ordinary citizens, eroding fairness, democracy, and social cohesion. The EU lacks harmonized policies to curb extreme wealth concentration and tax avoidance of the wealthiest.   Decades of tax policies have been rigged to benefit the super-rich while squeezing ordinary people. Since the 1980s, EU governments have cut taxes for the super-rich and companies, while relying more heavily on taxes paid mainly by ordinary Europeans, such as wage and consumption taxes.   Today, 8 in every 10 euros of tax revenue in the EU comes from taxes paid primarily by ordinary Europeans. Corporate income tax, the tax companies pay on their profits, makes up just 9% and taxes on wealth only 0.4%. Ordinary Europeans mostly earn through wages, which are, on average, taxed at a higher rate. By contrast, the super-rich grow even richer while paying less, using investments and holding companies that are taxed at lower rates or not at all in some EU countries. Meanwhile, wealth itself is barely taxed.   Oxfam calls for bold reforms, such as an EU-wide or national tax on the super-rich and transparency mechanisms like an EU assets registry, to fund social needs, climate action, and development. Taxing the super-rich is widely supported, is feasible and is urgent.   http://policy-practice.oxfam.org/resources/a-european-agenda-to-tax-the-super-rich-a-solution-to-inequality-in-the-europea-621736/ http://www.oxfam.org/en/press-releases/eu-billionaires-wealth-surges-over-eu400-billion-first-half-2025   Australia's tax system is providing huge tax discounts to the wealthiest, reports Oxfam Australia.   “Our tax system is deepening inequality because it fails to tax wealth. Today, billions of dollars in budget revenue is given away to the wealthiest in the form of tax discounts and because our tax system does not effectively tax the super-rich. Instead, it allows them to amass wealth and fund lavish lifestyles through untaxed growth in assets and investments. It’s time we tax income from wealth like wages, and that starts by scrapping the 50% capital gains discount on profits from sales of investments,” says Oxfam.   In a new report, The Elephant in the Room: Australia’s failure to tax wealth, presents new analysis showing what a wealth tax for Australia’s richest could raise. According to Oxfam Australia, if Australia’s 161 billionaires were taxed at a rate of 5% in 2025, this could have raised $33.5 billion alone.   $33.5 billion per year is enough to raise social support payments above the poverty line, build 50,000 new social housing properties a year, invest in better health and social services and offer greater support for international aid.   “Everywhere, ordinary people are feeling the squeeze from rising costs in housing, healthcare, transport, grocery prices. Yet while households struggle with cost of living pressures, our tax system allows unbridled wealth growth at the top and starves the budget of the revenue needed for the delivery of adequate public services. Wealth taxes and ending tax breaks that disproportionately benefit the rich and corporations are critical to funding health, housing, education and social security — the foundations of social cohesion and economic resilience,” said Dr. Muli.   http://media.oxfam.org.au/2025/10/24000-millionaires-pocket-half-of-capital-gains-tax-break-oxfam-australia/ http://media.oxfam.org.au/2025/06/number-of-australian-billionaires-more-than-doubles-in-10-years-turbocharging-inequality-oxfam http://www.oxfam.org.au/2025/01/takers-not-makers-how-billionaires-profit-while-billions-struggle   An Unequal Future: Asia’s struggle for justice in a warming, wired world   This report investigates how inequality, climate change, and digital exclusion intersect to shape Asia’s future. Drawing on data from across the region, the report reveals that how the richest 1% and 10% continue to accumulate wealth and power while billions remain trapped in poverty and vulnerability.   It features how climate disasters, gender disparities, and unequal digital access reinforce structural inequalities and injustice, threatening social stability and sustainable development. The paper calls for radical policies for progressive taxation, universal public services, gender equality, reducing digital divide and climate justice—to ensure a fairer and more resilient Asia.   http://policy-practice.oxfam.org/resources/an-unequal-future-asias-struggle-for-justice-in-a-warming-wired-world-621765/   July 2025   Africa’s richest four hold more wealth than half the continent - Oxfam, Development Finance International   Today, just four of Africa’s richest billionaires hold $57.4 billion in wealth — more than the combined wealth of 750 million people, or half the continent’s population, according to a new Oxfam report.   The report – Africa’s inequality crisis and the rise of the super-rich – launched ahead of the African Union Mid-Year Coordination Meeting in Malabo, Equatorial Guinea, warns that the explosive concentration of wealth is accelerating inequality, driven by policies that enrich elites while starving public services.   Fati N’Zi-Hassane, Director, Oxfam in Africa, said:   “Africa’s wealth is not missing. It’s being siphoned off by a rigged system that allows a small elite to amass vast fortunes while denying hundreds of millions even the most basic services. This is an utter policy failure —unjust, avoidable and entirely reversible."   Africa is one of the most unequal regions in the world and has some of the highest poverty rates. Nearly half (23) of the world’s 50 most unequal countries are African, while extreme poverty has soared: seven in ten people living in extreme poverty today are in Africa, compared to just one in ten in 1990. Hunger is also worsening, with nearly 850 million Africans experiencing hunger — an increase of 20 million since 2022.   Despite deepening poverty and widening inequalities, African governments remain the least committed globally to narrowing the gap — slashing budgets for public services like education, health and social protection, while imposing some of the world’s lowest wealth taxes on the ultra-rich.   On average, the continent collects just 0.3% of GDP in wealth taxes. This is less than any other region and well below Asia (0.6%), Latin America (0.9%), and OECD countries (1.8%). Over the past decade, that already meagre share has dropped by nearly 25%.   For each dollar African countries raise from personal income and wealth taxes, they collect nearly three dollars from indirect taxes like Value Added Tax (VAT) — levies that deepen inequality.   The consequences are glaring. Half of Africa's population live in 19 countries where income inequality has worsened or stagnated over the past decade. The richest 5% in Africa now hold nearly $4 trillion in wealth, more than double the combined wealth of the remaining 95% of the continent’s population.   Fatouma, a mother of 10 children who sells vegetables in El Afweyn, Somalia says: "Meat is a luxury we cannot afford in many homes. I earn about two dollars a day while the price of one kilo of flour has tripled."   As debt burdens mount, governments across the continent are squeezing the poor – gutting essential public services – while shielding the wealthiest from fair taxation.   An earlier report by Oxfam and Development Finance International found that 94% of African countries with active World Bank and International Monetary Fund (IMF) loans (44 out of 47 countries) have slashed spending on education, health and social protection in 2023-2024 to repay debt. This significantly undermines the AU’s goal of reducing inequality by 15% over the next 10 years.   “The solution is not far-fetched: tax the rich and invest in the majority. Anything less is a betrayal. If African leaders are serious about their commitments, they must stop rewarding the few and start building economies that work for everyone,” added N’Zi-Hassane.   Some African governments are already proving that fairer economies are possible. Morocco and South Africa collect 1.5% and 1.2% of their GDP from property taxes, respectively — among the highest in the continent. In Seychelles, the poorest 50% have seen their income share grow by 76% since 2000, while the richest 1% have lost two-thirds of theirs. The government also guarantees universal healthcare, free quality education, along with a robust welfare system for the most vulnerable.   A modest tax on Africa’s richest - just 1% more on wealth and 10% more on income – could generate $66 billion a year for the continent (2.29% of Africa’s GDP), according to the report. This would be more than enough to close the funding gaps needed to deliver free quality education and provide electricity to every home and business still in the dark.   "Every African woman, man and child deserves to live in dignity. When a handful of billionaires are allowed to hoard obscene wealth while millions are trapped in poverty, the system becomes not just broken but morally bankrupt. As leaders meet for AU Summit, delay is indefensible. Taxing the super-rich isn’t just fair — it’s essential for building the Africa we want," said N’Zi-Hassane.   http://www.oxfam.org/en/press-releases/africas-richest-four-hold-more-wealth-half-continent-oxfam http://www.oxfam.org/en/research/africas-inequality-crisis-and-rise-super-rich http://policy-practice.oxfam.org/resources/kenyas-inequality-crisis-the-great-economic-divide-621771/ http://www.equals.ink/p/the-rise-of-africas-super-rich-part http://www.equals.ink/p/taxing-africas-super-rich-part-2 http://policy-practice.oxfam.org/resources/the-commitment-to-reducing-inequality-index-2024-621653/
	People in poverty continue to pay the high price of a debt crisis not of their making by UN News, OHCHR, Debt Justice, Caritas, agencies   16 June 2026   UNICEF Executive Director Catherine Russell remarks at the Annual Session of the UNICEF Executive Board. (Extract):   "I’d like to highlight an issue that has deeply concerning implications for whether children can realize their right to essential services and care – the fiscal burden of servicing huge and unsustainable debt.   “Today, nearly 400 million children live in countries where debt burdens are outpacing investment in health, education, and nutrition. In 37 countries, home to approximately 1.1 billion children, governments now spend more servicing debt than they do on health. This means less available resources for children’s vaccines, medicine, and primary health care.   “The consequences are profound. These countries account for an estimated 3.2 million under-five deaths, and 96 million stunted children each year.   “In other words, children are suffering and dying because their governments are spending increasingly high levels of their revenue to service their debts – resources that could otherwise be used on essential services.   “How the world responds to this debt crisis is one of the most consequential questions for children everywhere. The choices made now – on debt restructuring, on fiscal space, on what gets protected, and what gets cut – will shape the trajectory of an entire generation.   “Three decades ago, we saw some success in debt reduction. Debt relief initiatives helped create fiscal space for investments in child survival, education, and development. This created a fresh start for some fragile states. However, many countries eventually experienced a return to the high risk of debt distress due to global commodity price drops, climate shocks, and new borrowing.   “Debt sustainability is often discussed in financial terms. But for children, it is ultimately about whether schools remain open, whether health workers are paid, whether nutrition programmes continue, and whether governments can invest in the next generation.   “In this sense, debt is not only a financial issue. It is a child-rights issue. And protecting children's rights requires protecting investments in children.   “UNICEF will continue to work with governments, international financial institutions, development banks, and partners – including the Vatican – to ensure that children remain at the center of the conversation on debt restructuring, fiscal policy, and development financing."   http://www.unicef.org/press-releases/unicef-executive-director-catherine-russell-remarks-annual-session-unicef-executive   May 2026   Cutting debt servicing costs for the world’s poorest countries could free up $900bn a year for development, a new report to the UN secretary general outlines.   Prepared by advocacy group Development Finance International (DFI), the analysis warned that the world is facing “the worst ever debt-provoked development crisis”.   The G77 developing countries spend a total of $8tn a year servicing their debts, the report showed – equating to an average of 35% of government spending. Six billion people are living in countries where spending on debt service is higher than the annual health budget.   The UN secretary general, Antonio Guterres, has previously called for global action on debt relief to free up resources to spend on meeting the sustainable development goals (SDGs). Specifically, he suggested debt restructuring for the hardest-hit countries; and halving borrowing costs for countries that need to borrow from financial markets.   In the new report, based on data from the International Monetary Fund (IMF), DFI modelled, country-by-country, the benefits of implementing such a plan.   In total, it found that halving borrowing costs for the 33 countries paying the highest interest rates, plus reducing repayments to 10% of government revenue for others – including those regularly hit by climate crises – could free up as much as $3tn a year to be spent on development.   What it suggests may be a more realistic plan, which excludes wealthier developing countries such as China, could still free up $917bn a year – allowing countries to more than double their social spending.   On average, the savings would be worth 9% of annual GDP for beneficiary countries. “If the international community can deliver comprehensive debt relief to countries which need it, and reduce the debt service burdens of many more, it will provide the fiscal space needed to fund the current SDGs,” the report said, adding, “the question is whether the world will find the political will to achieve these objectives, and relieve the suffering of billions of the world’s citizens.”   The report showed that the burden on developing countries is now greater than in the run-up to the Make Poverty History campaign in 2005, when   the UK government used its leadership of the G8 summit in Gleneagles to secure pledges of debt relief.   Today’s situation is more complex, with less direct bilateral lending from governments, and more private sector lending.   The IMF warned recently that the growing significance of private sector investors such as hedge funds as lenders puts developing countries at greater risk of higher interest rates and currency shocks – including as a result of the ongoing conflict in the Middle East.   These inflows of finance, “tend to be more volatile than bank flows and are increasingly sensitive to global risk conditions”, the IMF warned.   Higher borrowing costs as a result of the Iran war, which has restricted oil supplies and pushed up inflation, are expected to increase the burden on developing countries in the coming months.   Max Lawson, head of inequality policy at Oxfam, said: “Why should paying debts to rich bankers in London or New York be more important than feeding hungry people or getting kids in school? Global south governments were already on their knees, and are now facing a huge new food crisis caused by the Iran war. They need massive debt relief and they need it now.”   http://www.development-finance.org/en/news/894-5-may-oslo-debt-relief-could-allow-g77-to-double-social-climate-nature-spending http://www.theguardian.com/global-development/2026/may/06/cut-borrowing-costs-for-poorer-countries-to-free-up-900bn-for-development-report http://blogs.lse.ac.uk/inequalities/2026/06/02/does-the-design-of-the-international-monetary-system-sustain-inequality/ http://wir2026.wid.world/insight/exorbitant-privilege/   People in poverty continue to pay the high price of a debt crisis not of their making, by Olivier De Schutter - UN Special Rapporteur on extreme poverty and human rights:   The international financial system is failing to address the catastrophic debt crisis that is engulfing developing countries and causing misery for hundreds of millions of people, the UN’s poverty expert said today.   “The debt crisis is not just a fiscal issue; it is a full-blown human rights crisis,” said the UN Special Rapporteur on extreme poverty and human rights, Olivier De Schutter, on the International Day for the Eradication of Poverty.   “In the poorest countries of the world people are struggling to eat, access health services or send their children to school, while their governments shell out billions of dollars to pay back loans to wealthy creditors.   “Making a bad situation worse, countries with the highest levels of debt also tend to be those most vulnerable to climate change, but are being forced to prioritise debt repayments over addressing the severe consequences of the climate crisis.”   The expert warned that rocketing interest rates since the Covid-19 pandemic were sinking countries in the Global South further into debt.   In 2023, a record 54 developing countries allocated 10% or more of government revenue to paying off the interest on their debt, leaving “little room for countries to spend on poverty-busting public services such as education or social protection”. 3.3 billion people live in countries that spend more on interest payments than on either education or health. Interest rates demanded from developing countries are also much higher than those paid by rich countries. African countries borrow money at almost four times the rate paid by the United States, despite the astronomical level of US debt.   “This perverse scenario has been playing out in the Global South for years, accelerating the freefall into poverty seen since the pandemic,” De Schutter said.   “Creditors have responded too little, too late. The G20’s ‘Common Framework’, agreed in 2020 to bring international financing institutions (IFIs), individual states and private lenders together to speed up debt restructuring, is simply not working.”   De Schutter called for immediate debt relief for countries in crisis and urgent reform of the international financial system to align with human rights.   “Banks and hedge funds have become huge players in the world of sovereign debt and should not be exempt from their human rights responsibilities. It is abhorrent that debt repayments to the world’s richest corporations are being paid at the expense of children’s education or healthcare. Governments must introduce legislation to compel private creditors under their jurisdiction to participate in debt relief for low income countries.   “Comprehensive reform of the international financial architecture, as advocated by the recently agreed Pact of the Future, is also needed. The current system within the IFIs, characterised by unequal representation between high and low-income countries, unfavourable lending conditions, and unfair debt restructuring is trapping too many countries in a cycle of poverty.”   The Special Rapporteur lamented the conditions attached to bailout packages from IFIs which, with their demands for austerity measures, sale of state assets and, at times, surcharges already denounced by UN human rights experts, make it near impossible for states to comply with their human rights obligations and lock countries into unsustainable growth patterns that have only worsened poverty and inequality.   “With Pakistan recently agreeing to its 24th bailout from the International Monetary Fund, which hinged on the country accepting what the Prime Minister called ‘conditions beyond imagination’, it is clear that people in poverty will continue to pay the high price of a debt crisis that is not of their making,” the expert said.   “The solution to the debt crisis is neither to stimulate economic growth at all costs, nor to impose austerity policies. It is to cancel or restructure debt, and to focus on public investment, particularly in social protection, that will restore the prospect of long-term prosperity.”   Global financial architecture needs urgent reform to uphold equality and human rights   The global financial system must be rebuilt on the principles of equality, solidarity, and human dignity that underpin the United Nations Charter, a UN expert told the UN General Assembly.   The Independent Expert on the promotion of a democratic and equitable international order, George Katrougalos, presented his report to Member States, calling for bold and comprehensive reforms to create a fairer and more inclusive financial architecture.   The expert underlined that the current system continues to reflect the disproportionate influence of the global North. Katrougalos said that the report is not about assigning blame but about promoting reforms for fairer and more inclusive global financial governance, through open and forward-looking dialogue.   “Although international financial institutions claim neutrality, their policies prioritise market liberalisation, deregulation, and fiscal discipline over social equity,” he noted.   “They directly affect how much a country can invest in education, health, and social protection, and how it can respond to crises while maintaining its dignity and independence,” the expert said, warning that austerity and structural adjustment policies have often weakened labour protections, curtailed access to public services, and eroded democratic participation.   The expert underscored that economic policy cannot be treated as neutral or detached from human rights obligations. Financial institutions, as specialised intergovernmental organisations, are bound by the UN Charter and international law, including universal human rights treaties.   Yet, despite frequent references to human rights, climate action, or social inclusion in policy statements, these commitments rarely result in binding measures or transparent accountability.   He noted that, in 2023, developing countries transferred an estimated US$ 263 billion to the wealthiest 1 percent in the global North, while many low- and middle-income countries devoted nearly half of their national budgets to servicing external debt.   The report calls for a realignment of the Bretton Woods institutions around democratised governance, stronger accountability, and the integration of human rights into all aspects of financial decision-making. It urges the General Assembly to seek an International Court of Justice advisory opinion on the legal obligations of the International Monetary Fund and the World Bank to respect fundamental human rights.   Katrougalos said reform is both urgent and possible. “A democratic and equitable international order is not merely an aspiration but an obligation,” he said. “Only by placing people before profit and dignity before debt can we build a fairer, more sustainable global economy.”   http://www.ohchr.org/en/press-releases/2025/10/global-financial-architecture-needs-urgent-reform-uphold-equality-and-human http://www.srpoverty.org/2024/10/17/statement-international-financial-system-not-fit-for-purpose-to-address-catastrophic-debt-crisis-un-poverty-expert/ http://www.ohchr.org/en/documents/thematic-reports/a79142-report-independent-expert-effects-foreign-debt-and-other-related http://www.ohchr.org/en/special-procedures/ie-foreign-debt/annual-thematic-reports http://www.lse.ac.uk/granthaminstitute/news/overlooking-nature-is-no-longer-an-option-for-fiscal-policy-and-debt-sustainability-analyses http://www.ohchr.org/en/statements-and-speeches/2025/02/asg-brands-kehris-current-international-debt-architecture-unfair   http://www.ohchr.org/en/press-releases/2025/02/fair-and-effective-tax-policies-needed-advance-economic-social-and-cultural http://www.cesr.org/leading-voices-call-for-a-new-development-human-rights-centered-approach-to-sovereign-debt-at-paper-series-launch/ http://iej.org.za/category/resourcing-for-rights-realisation/resourcing-for-rights-realisation_debt-justice/ http://www.ipsnews.net/2025/01/developing-countries-choked-debt-year-breaking-free/ http://debtjustice.org.uk/press-release/lower-income-country-debt-payments-hit-highest-level-in-30-years http://debtjustice.org.uk/news http://cafod.org.uk/campaign/the-new-debt-crisis http://tinyurl.com/y45jmkdd http://www.eurodad.org/g20_imf_world_bank_fail_debt_crisis   Oct. 2025   Urgent calls for debt relief as study shows health and education cuts in developing world   Top economists are demanding urgent action on debt relief in Washington this week, as analysis from the campaign group Debt Justice shows struggling governments are cutting back on health and education.   As finance ministers and central bankers gather for the International Monetary Fund (IMF) and World Bank annual meetings, influential experts including the Nobel laureate Joseph Stiglitz, and leading economists Mariana Mazzucato and Jayati Ghosh, are urging them to “turn debt into hope”.   They are calling for the urgent replenishment of the IMF and World Bank’s debt relief funds, and changes to the way the institutions work, to ensure more countries can receive debt cancellation.   “Bold action on debt means more children in classrooms, more nurses in hospitals, more action on climate change, more jobs, more trade, and less need for aid,” they say in a letter to global policymakers published this week.   The signatories, who have been involved in producing important recent reports on debt relief, including for the UN secretary general and the pope, said African governments spend an average of 17% of their revenues on servicing debts.   “A cap of 10% in 21 countries could unlock enough money to provide clean water and sanitation to roughly 10 million people, as well as avert at least 23,000 under-5 deaths each year,” they argue.   Other signatories to the letter include the former South African finance minister Trevor Manuel, and former Italian prime minister Paulo Gentiloni.   Analysis by the UK-based Debt Justice shows declining health and education spending in countries whose debts the IMF considers to be “sustainable”.   Debt Justice looked at a group of 11 countries, including Sierra Leone, Mozambique, Kenya and Pakistan, which have long-term IMF programmes, and where the Washington-based lender classifies them as at risk of not being able to repay – but that do not qualify for debt relief.   The research finds that over the course of their IMF programmes, health spending per person in this group of countries has been cut by 18% on average in real terms with education spending reduced by 10%.   Heidi Chow, the executive director of Debt Justice, said: “By denying debt relief for countries that need it, the IMF is acting as a debt collector for rich and powerful creditors, while harming millions of people in debtor countries. Forcing countries to pay debts in full is leading to deepening crises in health, education and vital public services.”   Debt Justice is calling on the IMF to review how it decides when countries are entitled to debt relief, and assess the impact of spending cuts on development goals.   http://debtjustice.org.uk/press-release/imf-denials-of-debt-relief-triggering-drastic-health-and-education-spending-cuts-in-lower-income-countries http://data.one.org/2025-debt-open-letter   June 2025 (Columbia University-Initiative for Policy Dialogue, Caritas)   A new report by world-leading experts on debt and development calls for urgent action and systemic reforms to tackle the escalating debt and development crises affecting billions worldwide.   “The Jubilee Report: A Blueprint for Tackling the Debt and Development Crises and Creating the Financial Foundations for a Sustainable People-Centered Global Economy,” is authored by Pope Francis’ Jubilee Commission — a group of over 30 leading global experts led by Nobel laureate and Columbia University Professor Joseph Stiglitz and Columbia University School of International and Public Affairs Professor Martín Guzman.   The report follows Pope Francis’ repeated calls for global debt relief, which are now being carried forward by Pope Leo XIV, and brings together for the first time a combination of sound economic expertise with the moral responsibility to act.   The report powerfully shows that the debt crisis plaguing our global financial system is also fueling a development crisis. Fifty-four developing countries now spend 10% or more of their tax revenues just on interest payments.   Across the developing world, average interest burdens have nearly doubled in the past decade. This diverts resources away from essential investments in health, education, infrastructure, and climate resilience -depriving millions of life-saving care, nutrition and employment. This does not have to be the case: Solutions exist that are both economically sound and beneficial to all.   As global market uncertainty grows and refinancing options diminish for debt-distressed nations, this report charts a bold and practical path forward, arguing that, through shared responsibility we can avoid a lost decade for development and climate action and instead support economic recovery and long-term development.   The report presents a moral and practical vision: that global finance should serve people and the planet — not punish the poor to protect profits.   http://ipdcolumbia.org/publication/jubilee-debt-development-blueprint/ http://www.caritas.org/2025/06/why-the-jubilee-report-calls-for-a-rethink-of-global-debt/ http://www.caritas.org/2025/07/church-groups-say-more-action-needed-on-global-debt-crisis/ http://www.oxfam.org/en/research/private-profit-public-power-financing-development-not-oligarchy   June 2025   United Nations Secretary-General launches report to break “the cycle of debt distress”. (UN News)   The United Nations Secretary-General has presented new recommendations–Confronting the Debt Crisis: 11 Actions to Unlock Sustainable Financing–that aim to break the cycle of debt distress and lay the foundation for unlocking long-term, affordable financing that supports sustainable development.   With two-thirds of low-income countries now at high risk of—or already in—debt distress, the report highlights a growing crisis: soaring debt service costs are crowding out vital investments in education, health, and climate resilience.   “The current global debt system is unsustainable, unfair and unaffordable, with many governments spending more on debt payments than on essentials like health and education combined,” said the Secretary-General. “These 11 immediately actionable proposals can help resolve the debt crisis, empower borrower countries, and create a fairer system.”   Prepared by the UN Secretary-General’s Expert Group on Debt, the report reinforces the commitments put forward in the FfD4 Outcome Document and makes the case that an end to the debt crisis is entirely feasible—if opportunities are seized.   http://www.un.org/sustainabledevelopment/blog/2025/06/ffd4-press-release-sg-report-2025 http://news.un.org/en/story/2025/06/1165051 http://unctad.org/publication/world-of-debt http://www.ohchr.org/en/special-procedures/ie-foreign-debt/annual-thematic-reports   Mar. 2025   Debt crisis threatens progress in the response to AIDS   The significant health progress made over the past decade in Central, Eastern, Southern and West Africa—where many countries were on track to ending their AIDS epidemics—is now at risk of being reversed due to inadequate financing. One of the major causes of the funding shortfall is rising debts.   In 2020, as the Covid-19 pandemic halted economies and overwhelmed emergency rooms, many African countries borrowed from creditors to provide emergency services to their citizens. But four years later, the terms of those loans are forcing governments to make debt payments at the expense of health and other social services. Nearly two thirds of people living with HIV reside in countries that have not received significant debt relief post-Covid.   In West and Central Africa, debt to GDP ratios increased by 9 percent between 2018 and 2023. Countries such as Burkina Faso, Burundi, the Republic of the Congo, Cote d’Ivoire, Ghana, Liberia, Senegal and Sierra Leone have seen significant rises in their debt burden, now reaching at least 15% of GDP.   In East and Southern Africa, the situation is even more dire: in Angola, Kenya, Malawi, Rwanda, Uganda and Zambia, governments spend over 50 percent of their tax revenues on debt servicing. Many of these debts are from external private creditors seeking unreasonable profits – for example, one creditor in Zambia would make a 110 percent profit if the country paid back its debts. (As context, even highly profitable companies like Apple do not have profits that surpass 48 percent.)   Despite Zambia successfully reaching a debt restructuring deal with official creditors, effectively getting some debt relief last year, it’s still slated to pay two-thirds of its budget towards debts over the next two years largely due to not yet reaching a deal with private-creditors.   On the ground, crises are already proliferating; hospitals lack essential medicines and equipment. Labor unions and health activists have rallied across Lusaka demanding debt cancellation.   “Countries are facing life and death decisions,” said Charles Birungi, who leads UNAIDS’ work on macroeconomic and fiscal policy. “Do I pay for hospitals, medicines and education – or do I pay my debt? What if paying my debt means that my hospitals go without drugs?”   Two recent UNAIDS reports focusing on Eastern and Southern Africa and on Western and Central Africa outline that the future of funding for the HIV response in many African countries, as well as broader health and social welfare, rests on innovative measures to ensure governments can invest their own tax revenue for citizens.   “Progress is being made in the fight against HIV in both regions,” said one of the report authors and development finance specialist Gail Hurley. “Of course there were setbacks, including those related to Covid-19, but external funding and strong political commitment has provided a solid foundation to build on. Countries now need partial or even whole scale debt relief in order to achieve global health goals.”   Debt relief is especially critical for countries that want to move away from relying on international donors to finance their HIV responses. In East and Southern Africa, for instance, most HIV financing comes from two donors: the US President’s Emergency Plan for AIDS Relief (PEPFAR) and the Global Fund to fight AIDS, Tuberculosis and Malaria (which is also heavily supported by the US government). But without debt relief, countries cannot invest tax revenue in health systems.   Based on extensive consultation with economists and policy experts, UNAIDS has called for lenders and international institutions to re-negotiate debt payments to comprise at least less than 15 percent of respective countries’ annual budgets.   Such a policy for the heavily indebted countries of Angola, Burundi, Ethiopia, Kenya, Madagascar, Malawi, Mozambique, South Sudan, United Republic of Tanzania, Uganda, Zambia and Zimbabwe would free up $41 billion a year for health, education and social welfare.   The strategy has a precedent: the Heavily Indebted Poor Countries (HIPC) Initiative, launched in 1996 by the IMF and World Bank, aimed to ensure that states did not struggle under an unmanageable debt burden. It took a similar approach and relieved 37 countries of more than $100 billion in debt.   UNAIDS also recommends that governments increase tax revenue through measures like raising the income tax of the ultra-wealthy, wealth taxes, reducing tax exemptions and clamping down on tax-dodging. Amnesty International estimates that Zambia, for example, loses over USD 4.5 billion annually through tax evasion and tax avoidance.   Another option not included in the reports but recommended by UNAIDS’s partner WHO is a ‘health tax’ on products that lead to or exacerbate health issues, including sugary beverages, tobacco and alcohol.   In 2023, WHO called on all countries to increase taxes on alcohol and sugary drinks (and has previously suggested taxes on tobacco). These monies could then be re-invested in health systems.   But UNAIDS cautions that even raising tax revenue will not be enough to address funding gaps unless it goes hand in hand with debt reduction. Without swift changes to enable African governments to invest in health, Birungi fears what the future could hold. “What happens if we wake up tomorrow and the donors are gone?” he asked. “Will we go back to the 80s and 90s when people were dying in massive numbers?”   http://www.unaids.org/en/resources/presscentre/featurestories/2025/march/20250320_debt-crisis http://www.un.org/ohrlls/content/opinion-piecesop-eds/building-resilience-least-developed-countries-pathway-sustainable-transformation http://www.srpoverty.org/2025/01/17/financing-social-protection-floors-contribution-of-the-special-rapporteur-to-ffd4/ http://reliefweb.int/report/world/human-cost-public-sector-cuts-africa-april-2025 http://actionaid.org/publications/2025/human-cost-public-cuts-africa
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