The worst debt crisis in history, according to a recent research by Debt Relief International, which was commissioned by Norwegian Church Aid, has exposed a grave economic scenario for developing nations.
The study claims that these countries are spending almost half of their budgets on debt repayment, which has led to large reductions in vital public services.
The study looks at 144 developing countries and finds that 41.5% of budget income and 41.6% of spending go toward paying off debt on average. This amount is equivalent to 8.4% of the GDP of these countries combined. Critical spending on social protection, health, education, and climate change mitigation is being drastically reduced as a result.
