A new analysis by the United Nations Development Programme warns that rising sovereign debt servicing is reversing development gains and disproportionately impacting women across developing countries. Drawing on data from 85 nations, the report Who Pays the Price? Gender Inequality and Sovereign Debt finds that increasing debt burdens could lead to the loss of 55 million jobs for women in the short term, rising to 92.5 million in the long term. It also projects a 17 percent decline in women’s per capita income, while men’s income remains largely unaffected, further widening the gender income gap.
The report highlights that as governments allocate more resources to debt repayments, spending on essential services such as healthcare, welfare, and care systems is often reduced. These cuts disproportionately affect women, who rely more heavily on public services and are more likely to take on unpaid care work when such services are scaled back, limiting their participation in the formal economy.
Beyond employment and income, the analysis shows severe social consequences, including a projected 32.5 percent rise in maternal mortality—equivalent to 67 additional deaths per 100,000 births—and declining life expectancy for both women and men. These trends reflect increasing strain on already fragile public health systems and signal a broader reversal in human development progress.
Alexander De Croo emphasized that sovereign debt is not just an economic issue but a human one, noting that reduced fiscal space forces governments to cut vital social investments, with women bearing the heaviest burden. Similarly, Raquel Lagunas stressed the need for gender-responsive debt management, calling for impact assessments, protection of social and care investments, and budgeting approaches that account for unequal outcomes.
The report urges governments and global financial institutions to rethink debt strategies by prioritizing employment, human development, and gender equality. It also calls for a shift away from austerity measures that deepen inequality, advocating instead for policies that safeguard social spending and promote inclusive economic resilience.
