{
  "id": 15223794,
  "title": "Analysis-High debt, growing strains put focus on need for new development approaches",
  "url": "https://urgent.news/2026/10/17/analysis-high-debt-growing-strains-put-focus-on-need-for-new",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-17T15:06:19.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/economy-news/analysishigh-debt-growing-strains-put-focus-on-need-for-new-development-approaches-4955453"
  },
  "original_language": "en",
  "account": "High debt levels, escalating debt-service costs, and a significant decline in official development assistance are compelling developing countries and the organizations that support them to reconsider their development strategies and explore alternative funding sources, including private sector investments. World Bank President Ajay Banga revealed a threefold increase in private capital for development projects since 2022. He emphasized the need for changes to tackle the challenges posed by ongoing conflicts, a decrease in official development assistance, and rising debt burdens. A substantial demographic challenge is emerging, with approximately 1.2 billion young people expected to enter the job market within the next ten to fifteen years, but only 400 million jobs are anticipated. According to Banga, the solution lies in integrating public finance, private investment, philanthropy, and technology to cater to each country's specific requirements.\n\nBritish Foreign Secretary Ed Miliband plans to focus on debt restructuring and assistance for the world's poorest nations during Britain's upcoming G20 presidency. However, he believes the private sector should contribute more, as Britain and other affluent nations cannot provide the same level of support as they did during the last major debt forgiveness initiative at the turn of the millennium. Developing countries are also seeking solutions beyond the two Bretton Woods institutions, disheartened by their response to high debt levels, climate change, widening inequality, and geopolitical issues. Shekhar Aiyar, director and CEO of the Indian Council for Research on International Economic Relations, highlighted that the world has regressed since 2023, with developing countries suffering from decelerating growth, heightened vulnerability, and a drastic reduction in bilateral aid. Official development assistance from OECD Development Assistance Committee donor countries declined by 23% in real terms in 2025, marking the largest annual decrease in ODA history. The five largest donors—United States, Germany, UK, Japan, and France—accounted for 96% of the total reduction. UNCTAD reported that developing countries' combined external debt stock reached $12.3 trillion in 2025, a half-trillion-dollar increase from 2024.\n\nIndia's ongoing bilateral partnerships have been bolstered by the imposition of US President Donald Trump's tariffs, which have further strained developing countries and emerging markets. Indian Finance Minister Nirmala Sitharaman highlighted that countries like India are actively pursuing additional bilateral agreements. Eric LeCompte, executive director of Jubilee USA Network, criticized the 2023 meetings for lacking new initiatives to alleviate the debt burden of countries already grappling with high debt-service payments and increased borrowing costs. LeCompte noted that the IMF failed to gather sufficient support to launch its expanded Poverty Reduction and Growth Trust and barely mentioned the Catastrophe Containment and Relief Trust, which provides debt relief grants to the world's poorest countries. The European Network on Debt and Development questioned the lack of emergency measures to prevent developing countries from spending more on debt than on health and education. Additionally, there was a significant absence of serious policy responses to the accelerating climate emergency, exacerbated by a Super El Niño.\n\nLeast-developed countries have strongly advocated for more climate grants, reduced debt, simpler access, and faster disbursements. Muhammad Al Jasser, chairman of the Islamic Development Bank group, expressed growing interest in attracting private sector funds to supplement dwindling public resources. Despite the challenges, Al Jasser believes they are moving in the right direction, with his bank planning to allocate $10 billion in financing next year.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}