The 14th International Debt Management Conference renewed urgent calls for global financial system reforms to ensure debt supports development rather than undermining it.
? Shutterstock/timsimages.uk | Helmand, Afghanistan. High debt burdens can severely limit countries’ ability to invest in essential services for sustainable development.
As debt challenges grow in complexity and scale, existing multilateral tools have struggled to keep pace.
Addressing the 14th International Debt Management Conference held in Geneva between 17 and 19 March, UN Trade and Development (UNCTAD) Secretary-General Rebeca Grynspan urged reforms to prevent the current debt crisis from derailing progress.
“Behind us lies a system that needs reform; before us, the chance to build one that serves people and stability, long-term development, not recurring default,” Ms Grynspan said in her opening remarks.
Debt burden is stalling development
In 2023, developing countries’ external debt hit a record $11.4 trillion, or 99% of their export earnings.
Instead of financing essential infrastructure, education and healthcare, rising debt burdens are forcing governments into difficult trade-offs.
Currently, some 3.3 billion people live in countries that spend more on debt servicing than on either health or education. Interest payments outweigh climate investments in almost all developing countries, limiting their ability to respond to global challenges.
“This forces countries to choose to default on their development to not default on their debt. No more defaults on debt but yes on development,” Ms Grynspan warned.
Setting the stage for action
As the world heads toward the 4th International Conference on Financing for Development later this year, the biennial debt conference sets the stage for concrete solutions to reduce debt distress while protecting sustainable development.
The 14th edition of the conference, brought together:
- Over 600 participants from 107 countries, including policymakers, debt managers, representatives of civil society and academics
- 20 United Nations entities working together to advance solution
- Nine expert panels focused on addressing debt geopolitics, the debt-climate nexus, governance and transparency
A key focus was the Debt Management and Financial Analysis System (DMFAS), a signature technical assistance programme where UN Trade and Development has been helping governments strengthen debt management for over four decades.
The DMFAS advisory group met to assess capacity-building efforts and set priorities for the future.
Debt management gets a boost with DMFAS 7 software
The conference also marked the launch of DMFAS 7, the latest version of UNCTAD’s cutting-edge debt management software. The upgraded system enhances debt recording, monitoring and reporting with:
- Stronger security and broader data coverage
- Seamless integration with financial systems
- A redesigned user-friendly interface for efficiency and transparency
By modernizing debt management tools, DMFAS 7 will help governments track and manage debt more effectively, ensuring transparency and stability while keeping development goals on track.
Time for bold action
The message from the 14th International Debt Management Conference was clear: Urgent reforms are needed to ensure debt serves as a tool for progress, rather than a barrier.
With global cooperation and innovative solutions, countries can break the cycle of unsustainable debt and invest in a more resilient and inclusive future.