Geneva The global debt burden on developing countries has reached a staggering $31 trillion, severely undermining their ability to invest in education, healthcare, and climate resilience, according to warnings issued at the UN Trade and Development (UNCTAD) summit in Geneva.
UNCTAD Secretary-General Rebeca Grynspan told delegates from 195 member states that rising tariffs, shrinking investment, and mounting debt repayments are forcing nations into “impossible choices”—between defaulting on their obligations or abandoning development goals. “Uncertainty is the highest tariff possible,” she said, noting that tariffs imposed by major economies have surged from 2.8% to over 20% this year.
Grynspan emphasized that 72% of global trade still operates under WTO rules, crediting multilateral cooperation for averting a repeat of the 1930s-style tariff escalation. However, she warned that trust in the international system is eroding, and investment flows are retreating for the second consecutive year, disproportionately affecting poorer nations.
The summit also highlighted:
- Freight costs for landlocked and small island states are up to three times the global average
- Digital inequality persists, with 2.6 billion people still offline, most of them women in developing countries
- AI potential remains untapped, with fewer than one-third of developing nations having strategies to harness its benefits
UN General Assembly President Annalena Baerbock echoed the concerns, stating that many governments are forced to prioritize debt servicing over public investment. “Instead of building schools or expanding healthcare, they’re spending precious funds on interest payments,” she said.
The summit called for urgent reforms to global trade and finance systems to ensure equitable development and restore trust in multilateral institutions.
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