Kenneth Glad
Growing debt burdens are forcing difficult choices across many developing countries, with governments redirecting funds toward repayments. The impact is no longer confined to balance sheets. Behind the fiscal adjustments, a more uneven reality is emerging, one that is reshaping jobs, incomes and daily life in ways that are not equally shared.
Debt servicing has taken on a dominant role in national budgets. According to UN Development Programme research and reporting by The Guardian, 56 countries were already spending more than a tenth of their revenues on repayments even before recent geopolitical tensions added strain.
Since then, the outlook has worsened. Borrowing costs have climbed, while energy and fertiliser prices have surged, squeezing public finances further. Currency swings are adding another layer of pressure, making external debt harder to manage.
The International Monetary Fund has pointed out that reliance on private lenders has heightened exposure to global market shifts. When conditions tighten, options narrow quickly.
And that is exactly what many governments are now facing.
Disproportionate fallout
As budgets contract, the effects are filtering through public services. UNDP data covering 85 countries over three decades indicates that sectors such as healthcare, education and care services are often first in line for cuts.
These fields employ large numbers of women. When funding drops, so do jobs. UNDP estimates suggest about 22 million positions held by women were lost in the short term due to rising debt pressures, with the figure exceeding 38 million over time.
That scale is striking.
Income patterns reflect the same imbalance. In countries moving into higher debt stress, women’s average earnings fell by roughly 17%, while men’s incomes showed little overall change.
At the same time, reduced public services push more unpaid care responsibilities onto households, where women typically absorb the extra burden.
Alexander De Croo, UNDP administrator, described the difficult decisions governments face:
“In a moment like this, due to the instability in the world, but definitely induced by what is happening in the Gulf region, you see that governments are even more pressed to make choices.”
He cautioned that cutting social spending risks disproportionately affecting women, both as workers and as recipients of those services.
A widening gap
The consequences extend beyond employment. Life expectancy has declined for both men and women in countries under severe debt strain, pointing to broader stress on health systems and living conditions.
The UNDP report warns: “As currencies weaken and inflation rises, the cost of servicing debt increases, precisely when governments face growing demands to shield households from rising food and energy prices.”
This creates a bind. Governments must spend more on debt just as their populations need greater support.
The findings sharpen an ongoing debate about austerity and development. Protecting women’s access to work and income, De Croo argued, is not only a social priority but an economic one.
Without that focus, the gap is likely to widen further, slowing progress toward global equality goals at a moment when it is already under pressure.
Sources: The Guardian, UNDP, IMF
