UN Study Reveals Impact of Rising Debt on Women
Women in developing countries are bearing the brunt of rising debt burdens, according to a recent report by the United Nations Development Programme (UNDP). The comprehensive study, which analyzed data from 85 countries over the last three decades, reveals that when debt repayments rise, women are disproportionately affected, facing job losses and increased unpaid care duties.
Economic Pressures Intensify Due to Conflict
The report warns that ongoing conflicts, particularly in the Middle East, are likely to exacerbate this trend. As energy and fertilizer costs soar and global interest rates climb, governments in developing countries are cutting public spending to manage their rising debt obligations. This fiscal tightening is hitting sectors like education and care, where women are predominantly employed, leading to further job losses.
“If you reduce your social spending, you should know that a big chunk of it goes to women,” cautioned Alexander De Croo, UNDP Administrator, as he emphasized the need for debtor countries to consider the gendered impact of spending cuts.
The Scale of the Impact
According to the report, the debt-servicing burdens in the 85 developing countries studied nearly doubled from the early 2010s to 2022. This increase has resulted in the loss of 22 million women’s jobs in the short-term and more than 38 million in the long-term. Remarkably, the shift from a moderate to a high debt-servicing burden leads to an average 17% decline in women’s income per capita, while men’s income remains unchanged. This disparity also affects life expectancy for both genders.
Linking Debt Relief to Gender Equality
De Croo suggested that creditor countries could consider linking debt relief to policies that prevent cuts in social spending that disproportionately affect women. By ensuring women continue to have job opportunities, countries can achieve higher development outcomes.
Global Economic Challenges
The report highlights the broader economic challenges facing developing countries, as rising interest rates and currency volatility—fueled by private sector lenders like hedge funds—compound existing debt servicing difficulties. The International Monetary Fund (IMF) has also noted the increased vulnerability of these nations to economic shocks.
As the world continues to grapple with geopolitical unrest and economic instability, the UNDP warns that the debt crisis in developing countries could worsen, constraining the fiscal space needed for essential social investments and driving further inequality.
