UNESCO on Friday urged governments, multilateral lenders and creditors to expand use of debt-for-education swaps to blunt a deepening education financing shortfall that is forcing countries to divert money away from schools.
What UNESCO said and why it matters
The U.N. agency released guidance at a global education summit in Paris, arguing that swaps — where countries refinance or repurchase expensive debt and redirect the savings into education — can free up funds for teacher training, school construction and student supports in heavily indebted nations.
UNESCO highlighted growing pressure on education budgets with a set of striking statistics: 113 countries, home to about 6.1 billion people, now spend more on debt servicing than on educating their populations. In low-income countries, debt payments are nearly four times larger than education spending, and in 18 of the most indebted countries debt servicing exceeds education budgets by at least fivefold.
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Existing examples and international backing
UNESCO pointed to recent bilateral and multilateral examples intended to show how swaps can be operationalized. The agency cited a 2023 agreement with France that helped Ivory Coast finance construction of more than 30 schools, and a long-standing Spain-Peru programme that supported 50 education projects over a decade. The World Bank has also begun to back such arrangements.
- Debt-for-education swaps: refinance or buy back costly debt, channel savings to education.
- Recent bilateral examples: France–Ivory Coast (2023) and Spain–Peru programme.
- Multilateral engagement: World Bank has started to support these deals.
Scope of the shortfall and aid trends
UNESCO warned that international support for education is shrinking at the same time debt burdens rise. Its Global Education Monitoring Report projects global aid to education could fall by as much as 30% between 2023 and 2027. Reported year-on-year figures include an 8% drop in education aid in 2024 and a 15% decline in funding for basic education. Low- and lower-middle-income countries lost 21% of the education aid they received in 2023; several countries, including Afghanistan, Liberia, Mali and Niger, saw declines greater than 40%.
| Measure | Figure |
|---|---|
| Countries spending more on debt than education | 113 |
| People living in those countries | 6.1 billion |
| Projected fall in global education aid (2023–2027) | up to 30% |
| Estimated annual financing gap for low/lower-middle income countries | $97 billion |
Consequences and considerations for policymakers
The guidance frames debt-for-education swaps as one tool to protect education budgets without requiring fresh grant aid. For parents and educators in affected countries, successful swaps can mean more classrooms, better-paid or trained teachers and direct student supports. For creditors and international institutions, swaps raise practical questions about who shoulders short-term fiscal costs, how to verify that savings are spent on education, and how to design arrangements that are equitable and transparent.
UNESCO’s warning underscores a broader policy challenge: rising debt servicing and falling aid may force governments to choose between debt obligations and essential public services. The agency estimates an annual financing gap of $97 billion for low- and lower-middle-income countries’ education systems, suggesting that a mix of debt restructuring, targeted aid and domestic spending changes will be needed to avoid long-term learning losses.
As multilateral lenders like the World Bank engage in swaps, governments and education stakeholders will watch implementation details closely: how savings are protected for education, the pace of projects financed, and the durability of any relief provided to school systems under strain.
