UNDP warns developing nations face energy, climate and debt crises simultaneously
The UN Development Programme says low-income countries are being hit by soaring oil prices, a severe El Niño and rising borrowing costs, and urges immediate global support.
Speaking at the IMF and World Bank annual gatherings in Bangkok, UNDP chief Alexander De Croo warned that developing economies are confronting three overlapping shocks: oil prices above $100 a barrel, an unprecedented El Niño likely to trigger crop failures, and a global bond sell-off that has lifted borrowing costs to roughly 9%. He said governments have already exhausted fiscal buffers, forcing price hikes to pass through to households and risking a return to poverty for tens of millions.
A UNDP report titled “No Time to Recover” flags these compounding crises and calls for coordinated international action. Separate analysis by Debt Justice shows low-income countries classified as debt-distressed have cut education budgets by an average of 8% since 2019 and reduced overall public spending, worsening access to health and education. Debt Justice urges outright cancellation of the most burdensome debts and a overhaul of the IMF’s debt-restructuring framework, while De Croo stresses the need for affordable financing and liquidity measures such as central-bank swap lines.
Why it matters
The combined energy, climate and debt pressures could push millions in poor nations back into poverty without swift international aid.
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