In July, alongside the Congregations of St. Joseph NGO to the United Nations, Caritas Internationalis, NGO Committee on Financing for Development, Office of Religious Congregations for Integral Ecology (ORCIE), Development and Peace – Caritas Canada, CSJ Federation Office for Systemic Justice, Centre Oblat, and Mary Ward Centre Canada, we co-hosted a virtual Side Event during the High-Level Political Forum (HLPF).
Our discussion focused on the global debt crisis and its far-reaching consequences for developing countries — with particular attention to Honduras, Zambia, and broader international challenges. Experts explored the ways external debt undermines education, healthcare, and climate justice, while proposing concrete solutions for a fairer global financial system.
The speakers were:
- Sr. Ludibina Hernández, Congregation of the Sisters of Our Lady of the Holy Rosary, Honduras
- Dr. Martin Guzman, Pontifical Academy of Social Sciences and Columbia University’s Initiative for Policy Dialogue, Jubilee Commission
- Anjali Appadurai, Director of Campaigns, Climate Emergency Unit and Director of the Padma Centre for Climate Justice
- Dr. Grieve Chelwa, Associate Professor of Political Economy and Chair of Social Sciences, The Africa Institute, Global Studies University, Jubilee Commission
Debt’s Toll on Social Services – Sr. Ludibina Hernández
In Honduras, debt repayment demands often divert resources away from critical social services. Education struggles with limited rural access, poor infrastructure, and teacher shortages. In healthcare, shortages of medication, underfunded facilities, and restricted care for vulnerable populations persist. When governments prioritize creditors over communities, inequality deepens and public health efforts stall.
The Global Debt & Development Crisis – Dr. Martin Guzman
Drawing from the Jubilee Report commissioned by Pope Francis, Dr. Martin revealed that billions of people live in countries spending more on debt servicing than on health or education. The current financial system disproportionately benefits private bondholders, leaving citizens to bear the cost.
Proposed reforms include:
• Ending bailouts for international financial institutions.
• Changing debt-issuing laws to make restructuring fairer.
• Addressing systemic imbalances that trap nations in cycles of debt.
Climate & Ecological Debt – Anjali Appadurai
Ecological debt reflects the long-term environmental damage caused by over-exploitation of ecosystems, often at the expense of vulnerable communities and future generations.
Climate debt builds when wealthier nations overuse the planet’s limited atmospheric space. Addressing this requires upholding the principle of common but differentiated responsibility, ensuring climate action reflects historical responsibility.
Zambia’s Debt Story – Dr. Grieve Chelwa
Zambia’s crisis stems from three historical forces:
1. Heavy dependence on copper exports.
2. Structural adjustment programs that limited growth.
3. Western monetary policies that shaped borrowing conditions.
These forces converged in 2011–2012, prompting Zambia to issue Eurobonds and take on Chinese loans — leading to a 1,000% increase in external debt over eight years. Dr. Grieve stressed that this is not merely a case of poor financial management, but the result of historic and structural pressures.
Pathways to Reform
Drs. Grieve and Martin stressed that solving the debt crisis requires structural transformation, not just fiscal austerity. Recommended measures included:
• Diversifying economies to reduce reliance on single exports.
• Establishing sovereign wealth funds for stability.
• Creating development banks resilient to commodity price swings and external shocks.
The event closed with a call to:
• Support comprehensive debt reform.
• Endorse a UN Framework Convention on sovereign debt.
• Join the 2025 Jubilee Debt Cancellation Campaign to address unjust and unsustainable debt once and for all.
Sign the 2025 Jubilee Debt Cancellation Petition ICI.
