A new United Nations study has found that women in developing countries are disproportionately affected by rising debt burdens, a crisis expected to worsen amid ongoing conflicts in the Middle East. The research, conducted by experts from the UN Development Programme (UNDP), analyzed data from 85 countries spanning three decades, revealing that women bear the brunt of austerity measures when governments cut public spending to service debt.
Impact on Employment and Care Work
As nations allocate more revenue to debt repayment, women—who are overrepresented in sectors like education and care—face higher job losses. The report estimates that between the early 2010s and 2022, debt-servicing burdens in these 85 countries nearly doubled, leading to the loss of 22 million women’s jobs in the short term and over 38 million in the long term. Additionally, women often take on unpaid care duties when state services are reduced.
Income and Life Expectancy Declines
Moving from a moderate to a high debt-servicing burden results in an average 17% decline in women’s income per capita, while men’s income remains unchanged. Life expectancy also drops for both genders. The UNDP administrator, Alexander De Croo, emphasized the need for debtor countries to carefully weigh the impact of spending cuts, noting that social spending disproportionately benefits women.
Conflict-Driven Turbulence
The report highlights that even before the US-Israel war on Iran, 56 countries were spending over 10% of government revenue on debt. The conflict is expected to exacerbate the situation by driving up energy and fertiliser costs and global interest rates. De Croo called on creditor countries to link debt relief to commitments that avoid harming women, stating that helping women gain income and employment yields higher development outcomes.
Rising Debt Across the Developing World
The research underscores the risks of escalating debt burdens, compounded by soaring oil, gas, and fertiliser prices and cuts in overseas aid, including from the UK. The International Monetary Fund has warned that developing countries are increasingly vulnerable to interest rate hikes and currency instability due to private lenders like hedge funds. The UNDP echoes this, noting that currency volatility worsens debt servicing challenges, creating a vicious cycle that limits fiscal space for social investment.
